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Bitcoin surpasses $9,100

By Lawrence Gash

The leading cryptocurrency exceeds $9,000 for the first time this month, marking the end of its downward slide that wiped all of February's gains

On Thursday, March 5, Bitcoin (BTC) surpassed $9,000 for the first time this month. It marked the end of a downward slide which had wiped all of February’s gains.

By early afternoon trading (GMT) today, the world’s leading cryptocurrency stands at $9,131.90, up around 2 per cent on the day before.

Bitcoin’s one-week $1,400 plunge to as low as $8,548 on March 1 had perplexed some who had seen the digital currency as an alternative safe-haven asset during times of economic uncertainty.

The majority of smaller cryptocurrencies have also gained, with Bitcoin Cash (BCH) and Ethereum both surging by around 3 per cent.

While there is certainly no guarantee that Bitcoin is as a reliable safe-haven as gold, the fact that the yellow metal also dipped as markets tumbled on coronavirus fears has allayed some crypto-enthusiasts.

Cases in the West are increasing and the Fed has undertaken its largest rate cut since the crash of 2008, with a further cut expected. Both US and Chinese 10-year treasury yields have dropped to record lows and the current uncertainty is expected to continue for the near-future.

With gold at its highest level since 2012 it is clear that investors are flocking to safe-havens. However, it remains to be seen how many believe in Bitcoin’s anti-risk potential.

Notwithstanding the ongoing Covid-19 crisis, Bitcoin is poised for some major developments in the near future. On March 5, South Korea passed one of the world’s first comprehensive cryptocurrency laws, while earlier in the week India’s Supreme Court overruled the Reserve Bank of India’s (RBI) ban on crypto trading. While South Korea’s law is fairly strict and the RBI is appealing the decision, such developments indicate cryptocurrency’s growing credibility.

With Bitcoin now qualified as a legal form of money by the French justice system, the world’s leading crypto also seems to be gaining authority and credibility.

FURTHER READING: ‘Bond King’ predicts gold surge

FURTHER READING: South Korea legalises crypto trading

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