Bitcoin and cryptocurrencies have been expanding in the last few hours after a week below key levels for most of the digital assets. Ethereum (ETH) is the leader in the top 10 growing 11.25% followed by Tezos (XTZ) with an expansion of 10.04% and Bitcoin Cash (BCH) (9.29%).
Bitcoin Gets Closer to its Halving
Bitcoin is getting closing to a new halving event that will be reducing the new issuance of Bitcoin from 12.5 BTC per block to 6.25 BTC per block. This is going to be very bullish for the asset in the long term, considering that if there is an increase in the demand for this cryptocurrency, miners would not be able to provide the liquidity the market needs to keep prices stable.
At the moment, Bitcoin is being traded around $7,089.00 and it has a market capitalization of almost $130 billion. Furthermore, large cryptocurrencies such as XRP, ETH and Litecoin (LTC) are also experiencing positive movements in the last hours.
As mentioned before, Ethereum is growing by 11.25% and it has a price of $171.2 when some weeks ago it was traded close to $110. XRP is also close to a very important price level: $0.20. At the time of writing, XRP moved up 4.63% and it wants to reach $0.19. Litecoin, that halved last year, has a price of $42.31 and surged by 7.61% in the last 24 hours.
Despite the recent price increase, Litecoin is still traded below 0.006 BTC per LTC when a year ago it was traded around 0.0168 BTC per LTC. Indeed, digital assets are still down in terms of BTC but are trying to remain afloat in USD.
The Coronavirus crisis has affected the entire market, which has been closely related to traditional financial markets in the last few months. When traditional assets fell, the cryptocurrency market followed behind. The same happened when stock markets recovered. Bitcoin and digital assets followed.
Now that the United States economy is opening again, investors feel that it may be a good time to enter the space and invest in virtual currencies. It is worth mentioning that cryptocurrencies have been considered and treated as risk-on assets rather than as store-of-value (SoV). This is why it is important to understand how crises impact Bitcoin and digital assets and how investors could implement their strategies in difficult times.