Well, it looks like the spike to $10,000 that we just reported for bitcoin was short lived… Extremely short lived.
Well, the Bitcoin Run Didn’t Last Long at All
Just yesterday morning, the asset saw itself regaining all it had lost during the height of the coronavirus pandemic. The currency was trading for well above the $10,000 mark in February of this year and experiencing the most bullish behavior it had witnessed since the summer of 2019, but it ultimately came to a crashing end when the coronavirus hit the soil of several nations throughout the globe including the United States and many regions in Europe and Asia.
Once this occurred, things took a turn for the worse. Bitcoin saw itself lose nearly 70 percent of its value within a matter of weeks. The currency, in mid-March, fell into the high $3,000 range, and it would ultimately take more than a month before the asset began exhibiting bullish behavior again.
However, as we’ve seen in the past, bitcoin has proven itself to be quite resilient, and often comes back when people don’t expect it to. It’s strong, it’s capable, and it has a lot going for it, and BTC showed this just weeks before the halving when the currency rose back into the $8,000 range and then the $9,000 range, respectively. $10,000 would be hit very briefly, but the spike wouldn’t last.
$10K has proven to be a strong resistance level for bitcoin. While the currency has typically managed to move beyond it here and there, this never seems to extend beyond a few days or a few weeks if traders are lucky. This is the exact same thing that happened in February. Bitcoin wasn’t beyond $10K for an exorbitant amount of time. This figure was reached and remained in BTC’s grasp for only a matter of weeks before the currency fell back into the high $8,000 range in early March.
At this time, however, many traders didn’t realize that the mass selloff had already started, and many were experiencing early panic of the coronavirus.
Things Could Still Turn Around
What ultimately turned things around for the coin was the stimulus package. Approved in late March as a means of preventing further economic strife brought on by the pandemic, the U.S. government saw to it that many Americans received $1,200 checks in the mail or directly deposited into their bank accounts. However, this move has been met with criticism from several analysts, who claim that printing excess money like that could lead to inflation and other financial problems.
Many now began to see bitcoin and other digital assets as a means of hedging their wealth against problems like inflation. Whatever’s occurring now that’s caused bitcoin to drop so suddenly, perhaps it will only be temporary, and once again traders will see BTC as a beneficial financial tool.