The Bitcoin (BTC) price pumps seven percent while stocks take a massive dive
Bitcoin (BTC), the leading cryptocurrency by market cap, rallied more than seven percent within one four-hour candle on Apr. 1. At press time, it is changing hands at $6,625.
This strong start of the second quarter is certainly comforting for the bulls, but they are not out of the bear woods just yet.
Another Fool’s Day pump
On Apr. 2, 2019, Bitcoin flash-pumped by 20 percent, reaching the $5,000 level for the first time in more than four months. Despite Bitfinex’s $850 mln cover-up and the Binance hack, the Q2 cryptocurrency rally had no breaks, and BTC eventually reached its 2019 high of nearly $14,000 in June 2019.
While the most recent uptick pales in comparison to the massive green candle that kicked off last year’s bull run, it might be indicative of what to expect from the orange coin in Q2.
However, cryptocurrency trader John Rager points out that Bitcoin actually has to hold above the $6,600 level in order to avoid another breakdown.
Decoupling from stocks
After its first quarter on record, the widely-tracked stock market index took yet another massive hit after U.S. President Donald Trump predicted a ‘very, very painful two weeks’ for America where the coronavirus killed more than 1,000 people in a single day on Apr. 1.
Notably, the Bitcoin price pumped after the Dow plunged 974 points, which means that the much-coveted decoupling might be finally here.
As reported by U.Today, the correlation between Bitcoin and U.S. stocks recently reached a record high, according to BitMEX Research.