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Bitcoin is one of the most popular cryptocurrencies around the globe. It is one of the first digital coins which have taken the world by storm. Its popularity can be easily estimated from the fact that in December 2017, Bitcoin rose to a value of around $20,000. Many people hailed that time as the start of the Bitcoin era.
The value of the Bitcoin and, for that matter, all other altcoins keep on changing, and at times this phenomenon can come across as highly turbulent in nature. We are witnessing the same kind of trend today amidst the coronavirus pandemic, and now with countries opening up the lockdown in order to kick start the economy once again, Bitcoin, as well as the stock market, is witnessing a positive performance in terms of their valuations.
Bitcoin Prices
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According to the latest coming from the cryptocurrency market, the value of Bitcoin has broken through the $10,000 mark. As per experts and BTC forecast, this surge is motivating investors as financial experts predicting the arrival of positive sentiments into the market for the first time after the coronavirus pandemic. There has been a significant surge in the stock prices, indicating that the investors are willing to put in their money in anticipation of future gains. Although there have been some instances of conflict and rioting in the United States of America, which is dampening the spirit, the overall picture is expected to become positive in the near future.
Gold and Stock Prices
We are also witnessing a surge in the value of the Gold, which is a healthy indicator of the prices of the Bitcoin. Elevation in the gold prices is sure to rub off on Bitcoin, and as a result, we could possibly witness a further increase in Bitcoin prices. The trajectory of the rise in the prices of the Gold is quite interesting as its current valuation has already passed the pre-COVID time. According to the Bitcoin experts, the positive momentum in the prices of Gold and the S&P index is going to have a catalyst effect on the prices of Bitcoin.
Impact of COVID-19 on Bitcoin
One of the primary impacts of COVID-19 on the Bitcoin is that the pandemic has somewhat increased the correlation between the digital coin and equities. We have witnessed a number of instances in the past when there is a sharp decrease in the value of the Bitcoin, which can be easily correlated to the downward movement in the equity markets. That said, it might not be possible to estimate with absolute certainty what will be the impact of coronavirus pandemic on the Bitcoin in the coming time. But yes, we can predict with a certain degree of possibility that COVID-19 will help Bitcoin to establish its image in the market along the lines of the Gold and Silver. The high degree of turbulence and uncertainty will keep Bitcoin from becoming a preferred destination of investment (such as Gold), but it can certainly settle below the Gold in terms of preference of the investors to put their money in.
Conclusion
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The investment in the Bitcoin and other cryptocurrencies are subjected to market uncertainties and risks – just like any other investment in the equity market and other financial instruments. Trading in Bitcoin can help you make huge profits if done properly. But before you commence trading, it is always necessary to select an appropriate trading platform that can serve you in the best possible way, ensuring you get the best returns from your investments. But it is important to understand the difference between the cryptocurrencies and other conventional instruments of financial investment. If one compares returns that many people have got who initially invested in the Bitcoin especially in a time period when Bitcoin rose to fame with value touching an all-time high of $20,000, then there is no doubt about the huge difference that the investment in the digital coin can make to your financial portfolio.
