The crypto market is looking solid. A majority of cryptocurrencies are in the green zone. Leading the road to recovery are altcoins. While Bitcoin is recording a modest gain of just over 2%, top altcoins are up by 5% to 20%.
The surge follows a dropping correlation between the Bitcoin price movement and the stock market. In recent weeks, Bitcoin has recorded its highest correlation, 0.6 with the S&P 500. With the stock markets having their worst trend since 2008, there has been a huge plunge. For Bitcoin, in March, the digital asset has lost more than 40% of its value. As we reported that the drop was primarily driven by institutional investors cashing out.
In the last few days, despite the world financial collapse continuing in most markets, the crypto market has remained calm and positive.
Banking Failure Propels Crypto
Among the top 20 cryptocurrencies, leading at the time of press is Dash which has gained more than 20%. The surge comes as crypto adoption hits new highs in Latin America. In Venezuela, Bitcoin ( BTC) trading has surged by more than 30% as its national banking system remains shut down due to the coronavirus outbreak.
Dash has been pushing adoption in Venezuela. Active user wallets were reported to have grown by over 500% in 2019. Its adoption in the country and the current banking shut down could easily be pushing Dash higher.
Its rise has further triggered other altcoins to surge and now they lead Bitcoin. This has been a sign that the evangelized altseason witnessed earlier in the year could still be possible.
Bitcoin Ready To Bounce
Bitcoin is looking bullish, in the short term at least. It has in the last few days shown lower volatility and continues to solidify its position above $5K.
Boosting Bitcoin is the recent drop in the correlation between it and traditional markets. Although most financial markets have continued to plummet, Bitcoin has remained stable.
At the time of writing this, Bitcoin is exchanging for $5,400, the bulls key target is getting above $5,500 while ensuring the $5,200 support holds. If these numbers are achieved, we can expect Bitcoin to steadily continue rising.