Bitcoin and the aggregated cryptocurrency market have shown an uncanny correlation with the traditional markets over the past few weeks, which has subjected BTC to the significant downside that the market has faced due to the rapid spread of the lethal Coronavirus.
Today, however, the US equities market is rebounding, with the benchmark indices all trading up over 3% as the world widely anticipates President Trump to declare a state of emergency in an upcoming press conference.
This act, should it be taken, will unlock a significant amount of funding to combat the virus, thus giving investors a greater sense of security.
Despite this, it remains unclear as to whether or not this positive price action in the stock market will be enough to provide Bitcoin and the crypto market with some much-needed upwards momentum.
Stocks Rally on Hopes of US Declaring a State of Emergency
Multiple governors have been declaring state of emergencies within their states throughout the past several days in an effort to unlock funding to combat the spread of the Coronavirus, and it now appears that President Trump will be doing the same for the country in the next couple of hours.
Recent reports indicate that Trump is likely to invoke the Stafford Act in an upcoming press conference, which will allow the federal government to siphon more aid to individual states and cities.
This announcement is anticipated to come about in a conference scheduled for 3pm EST, and investors appear to be giddy that the U.S. is stepping up its efforts to curb the virus’s spread.
Currently, the Dow, S&P 500, and Nasdaq are all trading up over 3% – which comes close on the heels of yesterday’s massive selloff.
Will This Market Rebound Bolster Bitcoin?
Although Bitcoin has been acting firmly as a risk-on asset that is highly correlated with the traditional markets over the past several days and weeks, it is important to keep in mind that it has not yet rebounded alongside the equities market today.
At the time of writing, Bitcoin is trading down nearly 15% at its current price of $5,200, down from highs of nearly $6,000 that were set earlier this morning when bulls attempted to extend the momentum that was catalyzed when BTC bounced in the mid-$3,000 region overnight.
Depending on the tone and tenor of the upcoming presidential press conference, it is possible that Bitcoin will once again begin moving in tandem with the traditional markets, thus extending its short-term upwards momentum.
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