At the time of writing, bitcoin – the world’s number one cryptocurrency by market cap – has shot up to just under $8,700.
Bitcoin – On a Path to Recovery?
Yesterday, the asset was trading at a measly $8,300, the lowest it has been in some time. Thus, the currency has shot up by more than $300 in just 24 hours. Not only is this good news, but it also suggests some truth to a recent piece suggesting that bitcoin, despite all the global problems it was facing, would not fall below the $8,200 line this year.
So far, the currency is staying true to this sentiment and appears to be on a path towards recovery. At the same time, it’s probably too early to know for sure whether the currency will heal all its previous wounds within a specific time. The coronavirus is still meandering throughout countries like China, Italy, South Korea, Singapore and the United States, the latter of which recorded its first death due to the virus in Washington State.
Following news that the coronavirus was spreading as fast as it was, everyone began panicking. Some of this panic likely led to major selloffs in both the bitcoin industry and in the stock market, for at press time, bitcoin – which has lost nearly $2,000 since attaining a 2020 high of approximately $10,500 – is not the only one suffering.
Stocks have fallen greatly, with the Dow Jones dropping by roughly 1,000 points in recent days and experiencing its worst week since 2008, the year of the Great Recession and the global financial crisis that took a toll on both banks and real estate.
Other cryptocurrencies have also experienced a few nasty drops along the way. Bitcoin’s little brother bitcoin cash (BCH), for example, experienced a solid monthly high on February 15 in which the currency was trading for nearly $500 per unit. However, at press time, the asset has fallen into the low $300 range.
February 15 also saw Ethereum trading at nearly $300 per unit. Now, however, the currency has dropped to about $225, cementing a $75 drop in approximately two weeks.
It’s safe to say that traders, both professional and amateur, have not seen this much uncertainty since last August when the trade wars between the United States and China rose to prominence and brought a negative hand down upon markets everywhere. At that time, cryptocurrency was experiencing heavy drops, with bitcoin falling from over $12,000 to the low $10,000 range in just a matter of days.
The Momentum Is Remaining… Somewhat
Stocks also experienced a few nasty drops along the way.
Still, we can be grateful that bitcoin is trading for well above the $6,900 price it was stuck at when 2020 first rang in. Perhaps the currency has matured somewhat and can retain some of its recent momentum during times of strife.