KEY POINTS

  • Bitcoin jumped to $7,000 on Thursday as investors brace for depressing nonfarm payrolls on Friday
  • BTC's surge to $7,000 harks back to how it appreciated during similar stressful headline in January and early February
  • Morgan Creek co-founder Jason Williams thinks BTC will start a rally after the halving, reaching its all-time high on September

Bitcoin (BTC) surged to $7,200 on Thursday afternoon before finding a temporary floor at $7,000 as of writing. The top crypto, along with gold and commodity futures, traded higher in the past two days, which could be the market pricing in the likely depressed nonfarm payrolls set to release on Friday.

Some analysts interpret the positive moves on the top crypto and gold as the market clinging on to safe-haven assets, primarily since the NFP will provide a first glance at the severity of the COVID-19's impact on the U.S. economy. 

The consensus is that a 100,000 decline will be reported by the Bureau of Labor Statistics, and although this will only account for data until March 14, it's estimated to be a less optimistic figure nonetheless. It will also be the first time that jobs contracted in a decade.

BTC's sudden jump to $7,000 harks back to how it appreciated during earlier stressful events like war threats and initial market reactions to the coronavirus. 

The flagship crypto somehow caused everyone to doubt that blossoming gold-like status when it quintupled stocks' decline in mid-March. But as the market finds brief refuge, crypto investors reinvigorate that safe haven assertion.

"I think that people are seeking cover from what they think is going to happen in the traditional markets," Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, told Forbes. "The headlines are getting scarier by the day so people are trying to figure out where can they go for protection. I don't know if Bitcoin is the safest place, but many people are willing to try."

The upcoming halving in May, where the supply of BTC coming into existence will be reduced from a rate of 12.5 to 6.25 every 10 minutes, is also considered to be an event that will further a Bitcoin price rally.

Morgan Creek co-founder Jason Williams thinks that BTC's current levels will be short-lived and that it is indeed poised to go down before the halving. In addition, Williams also believes that the crypto will hit its all-time in September, a possibility that the options market cast a shadow on.

As there's no clear indication for when conditions will improve and more data is pending to comprehend the exact economic toll the virus has taxed on the U.S., the market's appetite for the top crypto is uncertain at this point. William's prediction will likely depend not just on the halving but on how the rest of the world recover once the virus is contained.

bitcoin-cryptocurrency-digital-ethereum-dollar-gold-investment-getty_large Bitcoin. There is an increasing demand for the U.S. central bank to develop a digital dollar to counter the digital yuan that is likely set for this year's launch. Photo: Getty