Bitcoin returns to form with solid price growth amid the coronavirus pandemic – SiliconANGLE

After a tumultuous two monthsduring the COVID-19 pandemic, the price of bitcoin is starting to return to form as the cryptocurrency sees its highest prices since the second week of March.

During the pandemic and related financial turmoil, bitcoin has been on a rollercoaster ride, dropping briefly below $4,000 March 12, down from more than $10,000 in the middle of February before slowly rising again.

Over the last week, bitcoins price has seen sustained growth, from $6,783.06 April 21 to $7,703.29 as of 10 p.m. EDT. A similar trend can be seen over the last month, bitcoin having dropped to $5878.71 March 30.

In the short term, bitcoin traders are looking to $8,100 as the next resistance point,according to Bitcoinist. Others, such as NewsBTC suggest that bitcoin may be entering a full-blown bull run should history repeat, comparing the current rally to that of February 2019, which saw bitcoins price move from $3,000 to $14,000 in five months.

One factor that may be influencing bitcoins upward movement is the forthcoming halving expected to take place May 12.The halving will cause the supply of new bitcoin available through bitcoin mining to be halved, hence the name. That creates a scarcity of new supply, which in traditional economics causes prices to increase.

A report from Glassnode also noted that many investors are holding their bitcoin during the coronavirus pandemic, indicating that long-term holders are not concerned by the price decline in March. Nearly 43% of circulating bitcoin supply has not moved in the last two years, a 10.4% increase from the same time last year, the report noted.

The unknown factor in looking forward, however, is the broader economy. Although bitcoin has long been pitched as a safe haven during difficult times, that theory fell flat in March as bitcoin declined along with equities markets. How long the pandemic continues, and if and when economies may start to reopen and eventually return to some sense of normalcy, is anyones guess at this stage, although there are some signs that the worst may be over.

Bitcoin may be well-placed to grow in the coming year alongside the recovery of broader markets, but given its history, it could go in either direction.

Show your support for our mission with our one-click subscription to our YouTube channel (below). The more subscribers we have, the more YouTube will suggest relevant enterprise and emerging technology content to you. Thanks!

Support our mission: >>>>>> SUBSCRIBE NOW >>>>>> to our YouTube channel.

Wed also like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we dont have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary onSiliconANGLE along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams attheCUBE take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.

If you like the reporting, video interviews and other ad-free content here,please take a moment to check out a sample of the video content supported by our sponsors,tweet your support, and keep coming back toSiliconANGLE.

Read more here:
Bitcoin returns to form with solid price growth amid the coronavirus pandemic - SiliconANGLE