Bitcoin jumped by 10% in a day which amounts to about $14 billion to give many investors hope. The cryptocurrency market had suffered a big blow almost two weeks earlier when it lost over $93.5 billion. Most of this was due to the health crisis in the world and the effect it was having on the stock market.
After the American government proposed a stimulus package,Bitcoin has somewhat begun to settle a bit. It is still an unsettling mater but their hope the recent increase will continue to trend upwards.
Vijay Ayyar emailed CNBC with a statement about therecent surge in price. He is the head of business development at cryptocurrency exchange company Luno.
“We’re seeing some really bullish bitcoin price action today along with other asset classes after the Fed announced unprecedented measures yesterday to shore up the economy,” he added. “This has given a lot of confidence to investors.”
The news is good as it stands but there is still some uncertainty and as the days go by, there could still be some up and down of the market.
“It will be interesting to see how bitcoin fares in such an environment, given this is its first test as a safe haven asset in a market downturn and is yet to be proven” Ayyar said.
What do you think about what was said? You can share your views by visiting CNBC.com