Crypto market experienced a large scale depreciation on Tuesday , with Bitcoin dropping by 3% and Ether dropping by over 5%, while S&P 500 has decreased 1.9% at the same time. However, Bitcoin surged and broke the previous level yesterday by $13,789 despite the stock market sell-off.
Political turbulence and epidemic cause economic uncertainty
While COVID-19 in the Asia area has become less severe, European area remains uncertain. The United States set a new daily record for COVID-19. According to the reports, at least 870 million cases in total were reported across the U.S. With the soaring number of infected cases alongside the weather change, Northern America and European countries are entering a difficult period. COVID-19 is a big influence on the Stock market, the S & P 500 Index reflected a 2% decline yesterday.
Meanwhile, less than a week until the US Presidential election, the efforts between Congress and the White House to reach a stimulus deal are at standstill, policy may not be implemented before the election.
Despite these uncertainties that suppress the global stock, the bullish atmosphere continues for Bitcoin, there is no sign of Bitcoin whale selloff even at $13,000.
Grayscale, the world’s largest crypto asset manager, published a survey that shows America’s Bitcoin investors are seeking new investment opportunities besides stock, under pandemic, which grow their interest towards Bitcoin.
An alternative to hedge the uncertainty
Institutional demand for Bitcoin grows significantly. Recently, Square acquired $50 million dollars’ worth of Bitcoin, accompanied with MicroStrategy acquired $425 million of Bitcoin, showing that crypto assets as a hedge against economic uncertainty under COVID-19.
Secondly, the biggest news in 2020 is, no doubt, the online payment giant Paypal announced to open up the transaction services of cryptocurrencies on its platform in early 2021. Paypal has 346 millions users in Q2 2020, according to Statista, its move may be the key to the mass adoption of cryptocurrencies, which has boosted Bitcoin’s price to reach $13,300.
Bitcoin has been extremely bullish, trading at $13,830 on the time of writing.
Cameron Winklevoss, Gemini co-founder, tweeted yesterday:
“Stocks took a dive today. #Bitcoin is flat. The decoupling is upon us.”