Bitcoin breaks above $7000, but will it continue to climb?

Bitcoin and the crypto market in general started this week in a positive way, as the leading cryptocurrency rose by about 4%, surpassing the psychological support level of $ 7000, and most expectations indicate that the currency will continue its upward momentum after achieving gains by more than 12% over the past seven days, especially with the observation of the growth of volumes Trading too.

Not only did Bitcoin outperform but the major cryptocurrencies also rose, with Ethereum adding more than 14% over the course of trading last week to trade in the $150 range, Ripple up by 8% and Litecoin by 9%.

Investors are optimistic that the picture will be clearer over the next few weeks, with the improvement in risk appetite in the markets after the decline in the number of infections with the Corona virus in the countries that are the hotbeds of the virus outbreak, and once the demand for risky assets increases actively, investors are expected to increase their positions in the currency encrypted.



And it seems that cryptocurrencies have shown a correlation with traditional risk assets as of late, as Bitcoin has seen a rally at the same time that global stock markets are starting to recover.

Data shown on the cryptocurrency exchange Coinbase XM Arabia That the crypto markets saw a buzz in trading and a high demand for their purchase following the market crash on March 12th, and attributed this to the fact that traders bought in times of decline allowing the market to bounce back quickly, but a large-scale reversal requires much larger amounts.

Experts expect bitcoin to achieve gains of about 16% to exceed the $10,000 level in the long term, although it was recorded only six weeks ago. Investors may push cryptocurrencies higher, while some say that the second quarter of this year does not look promising for the price of Bitcoin, especially as the global epidemic continues to spread without stopping.

Bitcoin is ahead of global stock indices

Bitcoin started the second quarter trading strongly, outperforming all major indices in the stock markets, as it rose with the beginning of the second quarter by about 9% to trade at a price of $6746, while stocks rose weakly.

Over the first three months of 2020, Bitcoin incurred losses by about 10%, while the Dow Jones index recorded losses by 23%, the Standard & Poor's 500 index declined by 20% and the Nasdaq index lost about 14% in the first quarter.

The losses of the bitcoin currency come in the last month of the first quarter (March), as the currency witnessed great volatility due to the spread of the Corona virus in the countries of the world on a large scale, which led to the collapse of financial markets with the rising expectations of a deep recession in the global economy as a result of the preventive measures taken by governments , which included major closures of cities and states, travel bans, imposition of bans, and a significant reduction in industrial and service activities.

These losses came despite the coin showing a 46% gain in February when the cryptocurrency traded near $10,500 in the middle of the month, significantly outperforming gold.

Mohamed Abdel Khaleq

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