Bitcoin bounces back over $10,000 amid coronavirus concerns | Technology | The Guardian
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On Sunday, bitcoin rose above $10,000 for the first time since September and by Wednesday was trading at $10,335 on Bitstamp. Photograph: Chesnot/Getty Images
Bitcoin has bounced back above $10,000 (£7,731), fuelled by investors seeking a safe haven amid fears over the economic impact of the coronavirus.
On Sunday, bitcoin rose above $10,000 for the first time since September and by Wednesday was trading at $10,335 on the Luxembourg-based bitcoin and cryptocurrency exchange Bitstamp.
It marks a significant shift in fortunes for the 10-year-old cryptocurrency, which hit a low of $3,196 in December 2018.
Bitcoin and other cryptocurrencies have joined gold as a safe-haven asset at times of economic or political uncertainty.
Trading in the cryptocurrency has been highly volatile and even after its latest bull run it remains well below its all-time high in late 2017, which was just short of $20,000.
While the coronavirus, which has been officially named Covid-19, is considered a factor in its latest surge, the main driver in the short-term is mostly attributed to the upcoming bitcoin “halving event” in May.
This will result in the number of bitcoins available to so-called “miners” being cut by half. The last time the supply was cut in 2016, bitcoin prices doubled and then surged to a record high the following year.“If bitcoin keeps going, this could well rekindle the debates as to whether bitcoin is money,” said Russ Mould, the investment director at AJ Bell.
“That in turn fuels discussion over whether it is worthy of consideration as investment as part of a balanced portfolio.”
Bitcoin has bounced back above $10,000 (£7,731), fuelled by investors seeking a safe haven amid fears over the economic impact of the coronavirus.
On Sunday, bitcoin rose above $10,000 for the first time since September and by Wednesday was trading at $10,335 on the Luxembourg-based bitcoin and cryptocurrency exchange Bitstamp.
It marks a significant shift in fortunes for the 10-year-old cryptocurrency, which hit a low of $3,196 in December 2018.
Bitcoin and other cryptocurrencies have joined gold as a safe-haven asset at times of economic or political uncertainty.
Trading in the cryptocurrency has been highly volatile and even after its latest bull run it remains well below its all-time high in late 2017, which was just short of $20,000.
While the coronavirus, which has been officially named Covid-19, is considered a factor in its latest surge, the main driver in the short-term is mostly attributed to the upcoming bitcoin “halving event” in May.
This will result in the number of bitcoins available to so-called “miners” being cut by half. The last time the supply was cut in 2016, bitcoin prices doubled and then surged to a record high the following year.“If bitcoin keeps going, this could well rekindle the debates as to whether bitcoin is money,” said Russ Mould, the investment director at AJ Bell.
“That in turn fuels discussion over whether it is worthy of consideration as investment as part of a balanced portfolio.”
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Francisco Gimeno - BC Analyst We continue to see different versions on why BTC prices go up or down. Any happening is enough for this. A feared pandemic, the future halving, anything is a reason for the pundits. The only certainty is volatility. Let´s not react on FUD or FOMO. Common sense is the rule.