Bitcoin price stays mostly steady despite global market plunge

Andrew Griffin
A trader reacts near the end of the day on the floor of the New York Stock Exchange: REUTERS/Brendan Mcdermid

The price of bitcoin and other cryptocurrencies is mostly remaining stable, despite major moves in the broader financial markets.

Bitcoin doesn't always track the global markets, and can be sent both up and down by developments in the broader financial industry. But any period of stability in cryptocurrency is remarkable, let alone one amid a dramatic correction in the global stock and debt markets.

Bitcoin has gained 0.26 per cent over the last day, and has been mostly flat in recent days. The same pattern has been seen in other major cryptocurrencies, like ethereum and ripple.

And in the last few days, bitcoin has even gained, despite concerns about the broader financial markets. The cryptocurrency plunge of recent weeks seemed to come to an end on 6 February, and the price has been slowly but consistently climbing since then.

Outside of cryptocurrency, financial markets are being haunted by a major correction that could signal something more permanent. Stock markets across markets including in the US and Asia have rapidly plunged, falling from record heights achieved in recent months.

Financial analysts regard corrections as a normal event but say the latest unusually abrupt plunge might have been triggered by a combination of events that rattled investors. Those include worries about a potential rise in U.S. inflation or interest rates and whether budget disputes in Washington might lead to another government shutdown.

"Markets are down again today, maybe unnerved by fears that the U.S. Senate will not pass a budget bill in time to avoid a U.S. government shutdown," said Rob Carnell of ING in a report. "With financial markets vulnerable at the moment, this was not great timing for such political brinksmanship."

Additional reporting by agencies