Bitcoin rises by about 2% after confining in a limited range over the past three months

The price of Bitcoin has received a lot of attention recently. In the past two months, the currency has achieved a good performance and maintained its levels above $ 9,000 after failing several times to breach the $ 10,000 level, while analysts warn of its price volatility and the risk of a return to what happened in March of this general.

Bitcoin has been trading in a tight range for the past three months since the halving occurred above $9,000, and it seems that investors have lost interest in the major cryptocurrency and shifted their focus towards alternative low-end coins.

Since the beginning of July until now, the world's largest cryptocurrency has been experiencing weak price action, and the currency's volatility levels have reached an all-time low since May 2015.

Bitcoin

Bitcoin

But during yesterday's trading, the coin saw a rise of about 2% and is currently trading above $9,300 from the $9,100 level, as the demand for buying Bitcoin began to increase, and this behavior indicates that there is momentum for a significant price movement, and may also indicate an upcoming bullish trend.

Some believe that the recent appreciation of the currency XM Arabia Coinciding with the approval of the leaders of the European Union on the stimulus program to support the infrastructure of countries affected by the Corona virus pandemic, the stimulus program is likely to inject nearly $1 trillion into the economy.

Financial stimulus and the rise of Bitcoin

Bitcoin has seen some impressive and consistent highs since the start of the Corona virus, at first things looked bleak and negative as the currency plunged to the level of 3800 dollars at once, then came back quickly and regained all the losses incurred during the Corona virus crisis, Bitcoin was seen as a financial performance To diversify the investment portfolio and hedge its wealth against inflation or other economic problems caused by the virus.

Many important figures have criticized the US stimulus efforts, claiming that it was impossible to print money the way the government did, however it seems that things have come in favor of Bitcoin which has stayed above the $9,000 level in the past two months, it is likely that many have turned to Exchanges like Coinbase have spent their stimulus money on crypto, so maybe the results weren't all bad.

Now the EU is copying America's tactics in trying to fix the economy and pump money back into business across Europe, while the current EU-based stimulus is nowhere near as big as the US's drilling plans, which amounted to more than 14% of the country's GDP, while The EU is around 2%, there is still nearly $1 trillion that European companies could receive in the coming weeks to help them recover financially from the devastating effects of the coronavirus outbreak.

Bitcoin's correlation with the stock market

One of the big issues with Bitcoin is that it is tied to the stock market, which means that no matter which direction the market decides to take it is likely to follow Bitcoin. Bitcoin is a long way off.

The stock market is a thousand times bigger than the crypto market, when the stock market goes down and many investors lose a lot of money those with digital investments will want to convert their investments into cash.

Mohamed Abdel Khaleq
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