Despite Bitcoin dropping below the $9,000 level on Saturday (June 27) due to growing concerns about new COVID-19 outbreaks in the U.S., traders’ nerves appear to have been calmed by new COVID-19 data that suggests the worst might be over.
As CryptoGlobe reported previously, on Saturday (June 27), the price of Bitcoin dropped below the $9,000 level for the first time since May 27 due to growing concerns over the surge in the number of COVID-19 cases in the U.S. and some other parts of the world.
As you can see in the two-week BTC-USD price chart below from CryptoCompare, the Bitcoin price fell as low as $8,943 — which is the lowest it has been since May 27 — by 19:00 UTC on June 27:
However, since then, Bitcoin has had a nice bounce, and it is current trading at $9,132, down 0.57% in the past 24-hour period (but up 2.11% since that one-month low on Saturday):
One plausible explanation for the calmer nerves we are witnessing today is the latest COVID-19 data from Johns Hopkins University's Coronavirus Resource Center: yesterday (June 28), in the United States, there were 38,845 new confirmed cases and 264 deaths. While these numbers are still terrible, at least, the latest number of daily new cases is thankfully lower than it was on some days last week.
According to a report by the Financial Times that was published a short time ago, “Florida’s daily tally of coronavirus cases has eased back from peak levels over the weekend, potentially providing some respite from a recent stretch when the number of new cases in the US topped 40,000 for three consecutive days.”
Apparently, according to a report by Florida State’s health department, 5,409 new COVID-19 cases in that state were confirmed on Sunday, which is down from the 8,424 new cases that were reported on Saturday.
CNBC says that Thomas Lee, Co-Founder, Managing Partner and the Head of Research at independent research boutique Fundstrat Global Advisors, is “taking solace in the fact that the acceleration in infection numbers is not yet leading to a marked rise in fatalities.”
CNBC’s report contains the following extract from a note by Lee that was emailed to Fundstrat’s clients earlier today:
“While there were many alarming COVID-19 ‘headlines’ over the weekend, noting ‘record case’ numbers, daily US deaths attributed to COVID-19 fell to a new low of 253…
“And while many are inclined to become ‘full blown’ bearish again, we think the divergence in healthcare in COVID-19 (cases vs deaths) and the trajectories mirroring NYC near its peak tells us we may be close to the point when cases begin to slow.”
As for U.S. stocks, with which Bitcoin has been showing a positive correlation most of the time since the COVID-19 pandemic started, they are doing a lot better today than last Friday, when the Dow, the S&P 500, and the Nasdaq finished the day down 2.84%, 2.42%, and 2.59% respectively.
Currently (as of 12:45 Eastern Daylight Time or 16:45 UTC on June 29), the Dow is at 25,460, up 442 points (or 1.8%), the S&P 500 is at 3,044, up 35 points (or 1.2%), and the Nasdaq is at 9,850, improving by 92 2points (or 1%).