Bitcoin’s dollar (BTC) value jumped 20% over the night of January 12, as the world’s most popular cryptocurrency quickly rebounded from a 27% drop just a few days earlier. A broader cryptocurrency market followed on Tuesday, with over $ 150 billion returning to global market value the same day.
The spot bitcoin rate jumped from $ 30,468 to $ 36,633 in just 15 hours before Tuesday morning, representing a 20.2% gain overnight. This recovered much of the currency’s losses last weekend, when the price of BTC dropped from $ 41,880 to $ 30,468.
As Reuters reported on Jan. 11, major US banking institutions are looking to lag far behind 2020, when the fourth quarter release is announced on Friday. Financial analysts are predicting a sharp contrast between the recent fortunes of bitcoin and the fortunes in the old banking sector, with some losses of over 40%.
Citigroup Inc is expected to fall 42% in the last three months a year earlier, while analysts expect Wells Fargo & Co to experience a similar fall of about 39%. Bank of America Corp. will publish its quarterly report, which is expected to lead to a 33% decrease in profits.
However, not all banks were hit towards the end of 2020, and JPMorgan Chase & Co is expected to see a less steep decline of 5%. The two major banks are expected to perform positively in the fourth quarter, with Morgan Stanley expected to generate a 1% profit and Goldman Sachs Group Inc may have 43% quarterly growth due to strong capital supply in the services markets.
Despite clear fluctuations in the banking sector, Barclays analyst Jason Goldberg says most companies aim to close the door by 2020 and remain optimistic about the coming year.
“You can think of Q4 as something of a transitional quarter if you look at some of the challenges from 2020 in the rearview mirror and look forward to improving by 2021,” Goldberg said.
Some banks have already surged 35% after the US presidential election in November. The announcement during the same period of the suspended COVID-19 vaccine is believed to have restored confidence in prudent investors.