Bitcoin futures climbed to their highest ranges in two months on Monday, surpassing $11,000 after clearing a key resistance level round $10,200. It may very well be a big breakthrough for bulls relying on what appeared like an inevitable rise after a month of stagnant sideways buying and selling. Gold futures costs reached all-time highs final week as a mirrored image of the weakened COVID-19 greenback. Traders have scrambled for dependable money options amid the pandemic, and Bitcoin has been a laggard whereas the inventory and gold markets skilled extraordinary recoveries. Bitcoin, the so-called “digital gold,” has lastly began benefitting from the identical weak greenback that has boosted gold futures. However, Bitcoin futures usually are not a assured protected hedge towards the volatility of the markets. In truth, the cryptocurrency has seen related volatility and is carefully tied to the markets; in March, Bitcoin dropped under $5,000 as the remainder of the market plunged alongside it. Analysts are nonetheless combined on Bitcoin’s outlook regardless of the latest rise, and a few worry that it will likely be hit even tougher by a COVID-19 second wave than the remainder of the market.
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