Bitcoin Has Hit the Five-Figure Mark
The surge follows news that the United States is suffering from civil unrest. With so many riots in the streets and violence occurring in what appears to be every major city, it’s no wonder that bitcoin has shot up more than $600 in a single night.
Just yesterday, the world’s number one digital currency by market cap was trading at around $9,500, though at press time, this figure has jumped past $10,100. It seems like all the crypto environment needs is a little uncertainty, and boom! Assets are jumping towards new highs.
This is the same thing that occurred in early May. Following a massive selloff that occurred at the height of the coronavirus pandemic, bitcoin, gold, and other speculative assets began to lose their value. Sadly, currencies such as bitcoin lost more than 50 percent of their value, with BTC falling into the high $3,000 range at one point.
However, as time went by and things began to calm down a bit, the United States issued a $2.2 trillion economic stimulus package, that while well intended, has been met with mixed reactions. Several industry analysts, CEOs, and business owners have looked at the move with criticism, saying that it was a short-term solution to a problem that will ultimately prove to be much bigger.
One of the stimulus package’s biggest critics was Elon Musk of SpaceX and Tesla fame. Musk claimed that the United States – or any country for that matter – was incapable of simply printing money out of thin air, and that this potentially paved the way for the death of the U.S. dollar through inflation and other economic problems.
Many seemed to agree with this notion and began investing in assets like BTC crazily. Coinbase and several other crypto exchanges throughout the United States reported purchases of crypto equaling $1,200, which is how much many individual Americans received from the government following the issuance of the stimulus package.
It appears that many people changed their ideas regarding bitcoin and similar assets from March following the issuance of the money. It wasn’t long before bitcoin began spiking like crazy, and just prior to the halving, the cryptocurrency hit $10K briefly all over again. While this didn’t necessarily last, the currency, in that moment, regained all its previous losses from the height of COVID-19.
Things Are Getting Scary
Now, the environments in America and Europe are once again heavily unstable and given that bitcoin tends to spike during periods of unrest, perhaps the currency is slated to step aboard an even faster bull train in the coming weeks.
In addition, to bitcoin, several altcoins are showing promise at press time as well, with Ethereum once again spiking beyond the $250 mark.