The price of bitcoin recovered after hitting 12-month lows, going down to $3,858 on Coinbase. It's the first time since March 2019 bitcoin price has been at that level but didn't last long as traders quickly started buying.
Things have calmed down. Prices are in the $4,600 to $5,900 range, in a market condition traders often refer to as "sideways."
Globally, equities fared better Friday after extreme selling Thursday. Coronavirus dominated the news cycle, but the S&P 500 index was up 9 percent on the day, a welcome reprieve.
Cryptocurrency traders are looking to the traditional markets for guidance in uncertain times.
"Equities and bitcoin have moved in lockstep recently, there is a relationship," said Max Boonen, CEO of B2C2, a London-based cryptocurrency market maker.
Price of Bitcoin Briefly Dips to 12-Month Low in Overnight Trading
Bitcoin made a quick bounce from a dip below $4,000 early Friday. Asian markets had gapped lower at the open, tracking the overnight losses on Wall Street, but recovered.
Bitcoin Ekes Gains, Remains in Red Amid Broader Market Rebound
Host Adam B. Levine talks about the recovery for bitcoin, the change in global markets from Thursday and what price drops for ether could mean for decentralized finance.
Tweet of the Day
The bitcoin halvening - when the reward for miners is cut in half - is expected to happen in the middle of May. The bitcoin market price halvening, however, clearly occurred over the last month.
Trend: Increased inflow of bitcoin into exchanges was a sign holders were getting ready to sell, which then translated into a price slide. It's something to keep an eye on as traders use the equities markets for guidance.
As for other top crypto assets, ether is one to watch. Ether's price is tied directly to decentralized finance (DeFi) applications. A spike in collateral liquidations for ether can lead to increased sell pressure.
Crypto Prepped Before Coronavirus Went Global (Coindesk) Skepticism of centralized systems has perhaps better prepared crypto firms and proponents for the uncertainty that is ahead.
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