Bitcoin shook off its volatility stage in the past week as it managed to rebound as much as 50 percent. This was made even more noticeable and dramatic in the wake of another poor week for the stock market which continued its own volatile downward run.
Bitcoin plummeted to a four-month low, reaching below $6,000 on some exchanges last week. However, in the past six days, there has been a steady increase in its price that saw it back over $9,000 for a short time.
At the same time, the S&P 500 Index and the Dow Jones Industrial Average both fell more than five percent eliminating any of the previous gains that were so heralded in the US.
US Equities outshine Bitcoin’s volatility
While last Monday there were signs of a correlation between the plummeting stock market and Bitcoin price, supporters of the digital currency have now thrown those shackles off. The talk is how in situations of global financial turmoil, Bitcoin remains steady.
By its decentralized nature, supporters are proclaiming that it is unrelated to any turmoil tied to central banking, state upheaval or private companies’ woes.
Since restarting its climb above $6,000 Bitcoin has seen volatility measures on the digital currency steady, but on the stock market, the mass sell off triggered the biggest jump on the Chicago Board Options Exchange Volatility Index ever.
Reasons for the rebound
The primary catalyst for Bitcoin’s turnaround must be attributed to the “do not harm” approach that was laid out in Senate where US Regulators provided a positive path for the digital currency.