Bitcoin appears to have overcome the difficulties of the coronavirus pandemic and may recover before the stock market. This week, the value of the cryptocurrency has exceeded $ 10,000 after a downturn in recent months.
On Monday (1st), its price reached $ 10,180 as recorded by the financial site CoinMarketCap. This Wednesday afternoon (3), the value was US $ 9,620. Still, the recent brand is welcomed by experts.
As the American page Mashable points out, Bitcoin’s value was trading above $ 10,000 in the middle of February 2020. However, the coronavirus pandemic has severely affected the stock and cryptocurrency markets.
In the middle of March, for example, the value was around US $ 4 thousand. In other words, there was a very significant drop in less than a month. For a quick comparison, the digital currency peaked at $ 19,000 in December 2017.
Therefore, the recent brand impresses analysts. For them, the cryptocurrency has already overcome the effects of the pandemic in relation to its value. At the same time, it indicates that it will be able to recover as quickly as the stock market.
Possible reasons for the rise of Bitcoin
It is difficult to understand the cause for this sudden increase. Some of the reasons could be the recent protests against racism, police brutality in the United States and the trillions of dollars that were injected by the American central bank.
The page also sees that reports on the interest of institutional investors may have influenced the price. In this case, they would be accumulating Bitcoin values.
This can be interpreted as positive news for cryptocurrency investors. Recalling that it has a predictable inflation rate, in addition to not having government interference.