The Nasdaq, which is a stock index that represents mostly technology companies, went past the 10,000 mark and reached a new high this week. Some of the stocks on the Nasdaq include Microsoft, Alphabet and Amazon. This rise of value has erased all of the losses incurred as a result of the COVID-19 pandemic. The soaring stock markets have some people wondering why Bitcon's value is staying at just 50 percent of its record high of $19,665.
For a while, it seemed like Bitcoin's value was in line with the stock market. However, it has seen a decline momentum even after it had a 167 percent value increase in the first three months of 2020. A bull trend and V-shaped stock market recovery demonstrates a demand for risky assets. Bitcoin may be due for a pull back.
The stock markets in the United States have seen a big trend up since local and state governments started allowing businesses to reopen. This has gotten many people back to work, too. The activity has a lot of people thinking that the worst of COVID-19 has passed. Bitcoin has already demonstrated its capacity to weather big global challenges, including COVID-19.
Many cryptocurrencies are in an unusual position right now. Investors are going through a FOMO rally. Institutional investors want safety. Analysts are not sure who is demanding Bitcoin at the moment. The stock market is currently seen as attractive by most retail investors, so it is probably not that investment class.
Some investors want to see if Bitcoin will have a big rally because the block reward halving event is done for a while. Trend analysis reports of Bitcoin sow that it is stable in the range of $9,100 to $9,300. One expert said holding there would allow a rise to $10,500 and then $11,600 to $11,900 in the short-term.
Bitcoin's value has been stable, hovering around $9,300 for about two weeks. This suggest volatility in the near future. The resistance level at $10,500 has existed for years. This price point is the one that traders are watching closely in the short-term future.