Bitcoin Is Suddenly Soaring And Smashing The Dow, S&P 500, And Nasdaq Indexes

Billy Bambrough-Forbes

Bitcoin has roared into the second quarter of the year, jumping above $7,000 per bitcoin and rising almost 15% over the last 24 hours.

The bitcoin price, which last month fell to under $4,000 in the aftermath of the coronavirus-induced broad market crash, has rallied hard since its lows—with many seeing it going far higher over the course of the year.

The bitcoin price hit $7,236 on the Luxembourg-based bitcoin and cryptocurrency exchange Bitstamp earlier today before falling back under $7,000. The reason behind bitcoin's sudden rally wasn't immediately clear.

However, bitcoin's rally over the last few days puts it way ahead of U.S. market gains, with the Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq all treading water after data showed over 6 million Americans filed for unemployment benefits last week due to the coronavirus shutdown.

For the first quarter of the year, bitcoin recorded heavy losses but didn't perform as badly as the major U.S. indexes.

The Bitcoin price fell 12% over the first quarter of 2020, outperforming the S&P 500's 23% decline, the Dow's 26% drop, and Nasdaq's 15% slump.

Gold, the classic safe-haven asset in times of uncertainty, added just over 4% during the first three months of the year.

"Gold, silver, the stock markets, and the digital assets market are all doing fairly well today," Mati Greenspan, founder of financial advisory firm Quantum Economics, wrote in a note to clients.

"It seems as if the massive cash hoarding phase may finally be over and investors are ready to put their money back to work. Bitcoin is up nearly 10% over the last 24 hours and is regaining a lot of it's dominance over the rest of the crypto market."

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