Bitcoin (BTC) just broke past $9,000 at 3.30am UTC. The price recovery far outpaces the Dow Jones Industrial Average, or Dow, one of the mainstream market’s key barometers.
Since its bottom near $3,850 on March 13, Bitcoin has pumped more than 130% in price, according to TradingView.com chart data. At its recent high near $24,750, the Dow has only risen approximately 36% since its March 23 low near $18,210.
Bitcoin is once again the best performing asset in 2020.
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) April 29, 2020
All markets fell in March surrounding coronavirus fears
U.S. coronavirus prevention measures took over during the first half of March as businesses closed and citizens stayed home ‘sheltering in place’. Bitcoin plummeted more than 50% between March 12 and 13, shooting down near $3,850 on some exchanges
Meanwhile, mainstream markets also dropped massively, including a 10% dive from the Dow. The Dow continued posting a number of subsequent red days following March 12, reaching its most recent bottom on March 23.
In contrast, March 13 proved itself as the most recent bottom for BTC. The asset has carved out a nice recovery since.
The halving news could also be at play
As mainstream and crypto markets continue recovering, there’s one fundamental driver that may be at the helm of Bitcoins drastic upward thrust — the coin’s block reward halving.
Occurring only every four years, Bitcoin’s halving cuts its inflationary supply in half, essentially leading to less new BTC regularly entering into circulation.
Due in just 12 days, Bitcoin’s halving has garnered much discussion, as previous events ultimately led to subsequent dramatic upward price action.
Many experts have weighed in on the topic in recent weeks, with some explaining the event might not play out the same as previous halvings. Only time will tell.