The last time bitcoin was above $ 8,000 was in the first half of March. Its value has increased by 23 percent in the last week. The speculators are driven to buy a cryptocurrency by the vision of an impending halving, when the newly generated virtual coins are to be halved. The relative rarity of the digital currency will then increase.
In mid-March, bitcoin et al. have gone through one of the sharpest price drops in their history, writing off 50 percent of their value in 24 hours. This year's minimum price for bitcoin is $ 3,700.
However, the virtual currency recovered quickly. In addition, for the first time since the massive February wave of sell-offs in the financial markets, bitcoin outperforms the broader US S&P 500, he pointed out The Block analyst Larry Cermak.
The head of the investment company Pantera, Dan Morehead, added that the cryptocurrency even managed to surpass this year's gold appreciation. Since the beginning of the year, its price has risen by more than 16 percent, while the precious metal has strengthened by 13 percent.
#Bitcoin overtakes Gold Year-To-Date.
Bitcoin was born in a financial crisis. It will come of age in this one. pic.twitter.com/Lw2Sn9RtR1
– Dan Morehead (@dan_pantera) April 29, 2020
“The cryptocurrency is responding to the crisis around Covid-19 and in some phases is beginning to behave like digital gold. In recent weeks, the purchase of bitcoins has increased by about 50 percent and interest in registrations has doubled,” said Martin Stránský, director of domestic bitstock.com.
Bitcoin was created in 2009 as an alternative to official currencies and over the years has established itself as the world's leading cyber currency.
However, its value fluctuates considerably. It recorded rapid growth in 2017, reaching a record high of more than $ 19,000 by the end of the same year.
Precisely because of this volatility, critics of bitcoin claim that the cryptocurrency cannot serve well as a means of payment or as a store of value.
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