Bitcoin

Bitcoin price rises 20% overnight as US banks prepare for big losses

Bitcoin’s dollar value (BTC) rose 20% overnight before January 12, when the world’s most famous cryptocurrency rebounded quickly after falling 27% a few days earlier. The broader cryptocurrency market followed on Tuesday when more than $ 150 billion returned to world market cap on the same day.

Bitcoin’s spot price rose from $ 30,468 to $ 36,633 in just over 15 hours prior to Tuesday morning, representing a 20.2% gain overnight.. This brought back most of the coin’s losses over the past weekend, when the price of BTC fell from $ 41,880 to $ 30,468.

24-hour Bitcoin price chart. Source: CoinGecko

As Reuters reported on Jan. 11, major US banking institutions are hoping to leave 2020 completely behind when the fourth quarter numbers are released on Friday. Financial analysts expect a stark contrast between Bitcoin’s recent fortunes and that of the old banking sector, with some expected losses of more than 40%.

Bitcoin price rises 20% overnight as US banks prepare for big losses
Bitcoin price rises 20% overnight as US banks prepare for big losses

Citigroup Inc is expected to see a 42% decline over the last three months of last year, while analysts are forecasting a similar decline of around 39% for Wells Fargo Co. Next week, Bank of America Corp will publish its own quarterly report, which suggests a 33% decline in earnings.

However, Not all banks suffered equally towards the end of 2020, and JPMorgan Chase Co is expected to see a less severe 5% decline. Two major banks are expected to post positive results for the final quarter: Morgan Stanley is expected to post a 1% return, and Goldman Sachs Group Inc could see a 43% increase in quarterly earnings thanks to a strong performance in its trading services. Capital markets.

Despite the obvious swings in the banking sector, according to Barclays analyst Jason Goldberg, most companies will try to close the door by 2020 and remain optimistic about the year ahead.

“You can think of the fourth quarter as a kind of transition quarter as it puts some of the challenges of 2020 in the rearview mirror and looks to an improved 2021,” Goldberg said.

Some bank stocks have rallied 35% since the November US presidential election results. The announcement of an upcoming COVID-19 vaccine over the same period is believed to have restored the confidence of cautious investors.

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