Bitcoin (BTC) has recently surpassed $7,000 as the entire cryptocurrency market recovers from the recent drop experienced a few days ago. As crude recovers from its historic plunge, Bitcoin and digital assets show to be traded between a range that seems to be very comfortable for traders.
Bitcoin Surges Above $7,000
In the last 24 hours, Bitcoin surpassed $7,100 by growing around 2,9% in the last 24 hours. The entire crypto market moved higher with Ethereum (ETH), XRP, and Litecoin (LTC) registering gains between 1.47% and 5.18% in the last 24 hours.
The main question is whether it will be possible for Bitcoin to move forward and continue its market expansion. According to Michael Novogratz, Galaxy Digital founder and a recognized investor in the cryptocurrency market, users and crypto investors are searching for scarcity rather than assets with unlimited supply such as fiat currencies.
Due to the Coronavirus expansion in recent months, governments proposed strong and large fiscal stimulus that are expected to help the economy. Nonetheless, many individuals consider that what is happening is just going to be accelerating inflation in the coming months. Indeed, Novogratz suggested that the economy “stinks” and it is going to “stink” “for a while.”
— Michael Novogratz (@novogratz) April 21, 2020
Bitcoin and other cryptocurrencies are considered to be scarce assets. Indeed, there are only 21 million BTC that will ever be mined. In addition to it, cryptocurrency users are waiting for the next halving event that is expected to take place in less than three weeks. This will be reducing the number of new Bitcoins from 12.5 BTC per block to 6.25 BTC per block.
Oil has fallen around 70% this year and Bitcoin has followed behind for a short period of time. The same happened when bitcoin fell in February just when the COVID-19 crisis was expanding all over the world. Bitcoin is now very close to the price it had at the beginning of the year, which shows the general crisis has affected the virtual currency in a limited way.
Currently, each Bitcoin can be acquired for around $7,100 and it has a market valuation of $130 billion. Ethereum, XRP and Litecoin can also be purchased for $182, $0,187 and $41.60 respectively. Now it is just a matter of time before Bitcoin halves and before we can see the impact this can have on the market.