Christel Quek – Chief Commercial Officer, Co-Founder, BOLT.Global:
“Cryptocurrency markets have begun to show signs of recovery following stark declines earlier in the month. Crypto markets seemingly received tailwind the past two days with massive stimulus being injected from the US. The Federal Reserve on Monday rolled out an extraordinary array of programs to support the US economy, while the US Senate on Tuesday came up with a massive $2 Trillion stimulus package – the largest in history.
The series of actions marks a massive intervention by the U.S. central bank beyond the financial markets, where it has so far concentrated its firepower, into the real U.S. economy. Bitcoin was created exactly for this reason as a decentralised currency, loosing confidence on massive central banks artificially propping up economies.
Anticipation of both a US Fed action and a Senate stimulus package led to Bitcoin’s recovery path, after previously lowering to $4000s about two ago. Under a market flooded with debt to prop up fiat currencies, the Bitcoin and other decentralised crypto projects hold promissory value for finally shifting into the mainstream.
Cryptocurrencies rely heavily on sentiment, and this is currently causing a wedge between them and the desired price mark. The previous example of this was in 2019, when prices dramatically hit $10,000 only to decline as much as $2,000 as investors remained anxious and unsure. With previous history suggesting that investors may react irrationally to any rally or decline, the recent policies introduced by the US and other governments and central banks indicate that a more cautious approach is required to help markets prop up gradually instead of creating mass price explosions in either direction.
Bitcoin seems to be resisting $7000 levels for now, and in similar vein Ethereum receded to $135 after testing 140s, while Litecoin has been floored towards $39-40s “