Global equity markets sell-off and Euro decline triggered high demand in Bitcoin

It is quite possible that the threat of an economic crisis and the threat of unity of the European Union were required in order for the cryptocurrency markets to see the light at the end of the tunnel. It is interesting that yesterday, the Bitcoin digital currency market moved to growth after almost three weeks of non-stop decline, bitcoin showed an impressive gain rebounding from local lows around the round mark of $7000 and rose to $7500.

For the equity markets as well as for the European currency, the day was extremely negative. The political crisis in Italy has exerted strong pressure on the euro. Italian bonds were sold out on the background of risks for the third largest economy in Europe, and the Italian version of Brexit.

Global stock markets were under strong pressure, and the single European currency fell to the level of seven-month lows. Over the course of the trading day, safe haven assets such as gold, US bonds and... Bitcoin were in demand.

Once again we are witnessing a curious situation when the decline in equity markets, the high volatility of the foreign exchange market and just high economic and political risks dramatically increase the demand for digital decentralized currencies.

The intrigue with the fate of Italy in the EU is just beginning to unfold, in the coming months, the country will be forming regular elections. In addition, this means medium-term risks for the euro and medium-term support for the Bitcoin market. However, other digital currencies, such as Ether and Bitcoin cash also traded positively.

Technically, the nearest local resistance is in the $7570 zone. More significant and stronger resistance is located at $7690-$7740.

FortFS