Tuesday's Market Minute: Bitcoin Clears $11,000 In Sudden Bullish Spike

Bitcoin futures climbed to their highest levels in two months on Monday, surpassing $11,000 after clearing a key resistance point around $10,200. It could be a significant breakthrough for bulls counting on what seemed like an inevitable rise after a month of stagnant sideways trading. Gold futures prices reached all-time highs last week as a reflection of the weakened COVID-19 dollar. Investors have scrambled for reliable cash alternatives amid the pandemic, and Bitcoin has been a laggard while the stock and gold markets experienced extraordinary recoveries. Bitcoin, the so-called “virtual gold,” has finally started benefitting from the same weak dollar that has boosted gold futures. Nevertheless, Bitcoin futures are not a guaranteed safe hedge against the volatility of the markets. In fact, the cryptocurrency has seen similar volatility and is closely tied to the markets; in March, Bitcoin dropped below $5,000 as the rest of the market plunged alongside it. Analysts are still mixed on Bitcoin’s outlook despite the recent rise, and some fear that it will be hit even harder by a COVID-19 second wave than the rest of the market.

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