Bitcoin prices traded narrowly higher Tuesday as it attempted to offset profit-selling behavior against an ongoing turmoil on Wall Street.
The benchmark cryptocurrency surged 0.42 percent to $57,829 ahead of the London morning bell. Its modest gains came as an extension to a bullish session on Monday, wherein the price climbed 3.29 percent. That further marked roughly 16 percent recovery after Bitcoin fell to near $50,000 last Thursday.
Bitcoin maintains its short-term bullish bias. Source: BTCUSD on TradingView.com
What Pumped Bitcoin?
The latest gains in the Bitcoin market surfaced in the wake of two concrete factors.
First, about $6 billion worth of options expired on Friday in favor of bulls’ preferred strike price target at $55,000. Second, it appears that investors’ bid for safe-havens surged after a large investment fund unwound billions of dollars in holdings, provoking concerns that global banks that traded with the firm could face severe losses.
With questions about the systemic risks associated with the disorderly #Archegos deleveraging (see earlier tweet for my take), it’s interesting to see the reactions of old/new hedging assets:#Gold and US government #bonds are lower in price; #Bitcoin and other cryptos are higher pic.twitter.com/R7s0hptBZ2
— Mohamed A. El-Erian (@elerianm) March 29, 2021
The story erupted last Friday after Goldman Sachs and Morgan Stanley started dumping billions of dollars worth of positions in Chinese and US stocks. They did it on behalf of an undisclosed investment fund that had defaulted on its “margin call” — primarily a requirement to deposit more collateral against its trades.
Story continues on Bitcoinist