There?s a popularmeme
[https://tenor.com/view/rollercoaster-bitcoin-cartoon-animated-up-and-down-gif-5894654] that shows Bitcoin on a perpetual rollercoaster. It?s true: The world?s largest
cryptocurrency by market cap is a very volatile asset.
But it?s not often that Bitcoin goes up past the??$10,000 mark. On Monday, it
happened again, and this time it may carry special significance.
The price swiftly rose from roughly $9,620 to $10,180 late on Monday according
toCoinMarketCap [https://coinmarketcap.com/currencies/bitcoin/], before settling
down at about $10,100. Other cryptocurrencies, including Ethereum and XRP, are
the green [https://coinmarketcap.com/]as well, with the total value of all
cryptocurrencies hovering around the $285 billion mark.
In mid-February 2020, Bitcoin was happily trading above $10,000 with a pretty
strong bullish momentum, but then the spectre of the coronavirus pandemic took
down the stock markets and cryptocurrencies alike, with the price of Bitcoin
hitting a low of about $4,120 in mid-March (again, that?s according to
CoinMarketCap; the price went significantly lower on some exchanges).
With the 10k milestone reached once again, however, Bitcoin has effectively
nullified the effect of the pandemic, at least when it comes to price. And
though it didn?t actually fulfill its promise of being a?safe haven?in times of
crisis, as some predicted, it did recoverfaster than stocks
Notably, Bitcoin is currently trading at roughly half of its all-time-high price
of about $19,700, which it reached in December 2017. But the bullish momentum is
clear once again.
It?s hard to predict what caused this latest, sudden price increase, with
potential candidates including the recentBitcoin halving
[http://finary.co/events/bitcoin-halving-could-lead-to-longer-term-rally-says-binance-us-ceo/] event, U.S.protests
[https://eu.usatoday.com/story/news/politics/2020/06/01/george-floyd-protests-ag-barr-deploying-riot-teams-dc-miami/5308052002/] against police brutality,trillions of dollars
[https://www.nytimes.com/2020/04/09/business/economy/fed-economic-rescue-coronavirus.html] injected into the economy by the Fed, andreports
[https://cointelegraph.com/news/institutional-investors-buying-up-btc-like-crazy-after-halving] of institutional buyers piling up Bitcoin.
All of the above can be interpreted as positive news for the price of Bitcoin,
which has a predictable inflation rate with fixed supply, and is outside of any
one government?s control. Some notable proponents, including investorMike
Novogratz [https://twitter.com/novogratz/status/1267574160194187265]and Gemini
[https://twitter.com/winklevoss/status/1258740504533110786], have recently
expressed optimism about Bitcoin?s price in light of these circumstances. As
always, however, there?s no guarantee that the price will continue its current
Disclosure: The author of this text owns, or has recently owned, a number of
cryptocurrencies, including BTC and ETH.
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