Bitcoin exceeded the $8,000 mark early Tuesday morning (March 10) before falling below the threshold at approximately 11:30 a.m. Eastern time. The digital currency experienced the rally after falling to two-month lows, CoinDesk reported.
The price of bitcoin was $7,983.22 as of 4:30 p.m. Eastern time, according to CoinDesk‘s real-time chart, marking a 24-hour change of 1.43 percent. The digital currency had traded under $7,000 in early January before breaking $10,000 in mid-February.
The bitcoin increases could continue in the event that equities keep becoming more balanced. Some digital currency fund managers have an optimistic outlook, with the rewards halving set for May.
Kenetic Co-founder and Managing Partner Jehan Chu told the outlet, “I expect bitcoin and the broader crypto markets to rebound quickly against the broader equity markets on the back of continuing wider adoption and strong sentiment.”
Chu continued, “I think short-term, this macro market shock will make it difficult for funds and startups to raise money, but mid- to long-term, it absolutely strengthens the use case of blockchain technology and crypto.”
Large European equity indices, with the inclusion of CAC in France and DAX in Germany, were in the green at the time of CoinDesk’s article, as S&P 500 was higher by more than 4 percent. The U.S. 10-year note yield is trading at 0.70 percent, while oil prices are registering a 7 percent increase. But gold is down almost 1 percent at $1,665 per ounce.
On Monday (March 10), news surfaced that digital currency markets dropped precipitously after oil prices plummeted and the stock market spiraled into another sell-off frenzy.
Oil markets fell a minimum of 30 percent following the breakup of the OPEC+ alliance, which prompted a price war between Russia and Saudi Arabia.
Bitcoin, which is said to be the largest digital currency by value, dropped by nearly 10 percent in 24 hours and closed the week at $8,024, a new weekly low. The DOW, S&P 500 and oil futures crashed as coronavirus fears grew stronger.