On March 30, Bitcoin smashed the $9,000 level boasting a staggering recovery that undoubtedly puts the stock market in the shade. The flagship token broke past the $9,000 mark at 3.30am UTC. This price recovery far outpaces the Dow Jones Industrial Average, or Dow which is one of the mainstream market’s major performance barometers.
Since the crypto bottomed near $3,850 on March 13, BTC has pumped over 130% in price according to TradingView.com chart data. During its recent high near the $24,750 zone, the Dow has just gained around 36% since its March 23 low near $18,210.
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) April 29, 2020
Now, undoubtedly, Bitcoin is the best performing asset in 2020.
Coronavirus Fears Pulverized All Markets in March
The United States prevention measures took over during the first half of March. At that time, businesses closed and people were told to stay at home. Bitcoin dropped from the skies losing almost 60% between March 12 and 13.
In the meantime, the mainstream markets also lost ground massively with the Dow losing up to 10%. The Dow continued to lose on consecutive days after March 12 reaching its most recent bottom on March 23. On the contrary, March 13 proved itself as the most recent bottom for Bitcoin. The asset has carved out a nice recovery ever since.
The Halving Effect
As the crypto and mainstream markets continue with their recovery, there is one major driver that could be at play for Bitcoin’s steep upward thrust, the block reward halving event.
The halving happens after every four years and it cuts the crypto’s inflationary supply in half. Eventually, it leads to less new Bitcoin regularly entering into circulation. Due in about 12 days, Bitcoin’s halving has gained much discussion since similar previous events led to subsequent dramatic price action.
Experts have already weighed in on the topic in recent months. Some of them explain the event might not play out the same as in the previous halvings. But, time will tell.