The cryptocurrency market has gained $23 billion in just 24 hours as the Bitcoin price surged past the $6,000 mark.
BTC Now Trading Above $6,000
The crypto market experienced a massive slump in recent weeks, with the Bitcoin price dropping below the $5,000 mark over the past few days. The effects of the coronavirus outbreak on the global financial system and other internal activities have clearly affected the cryptocurrency market, with Bitcoin dropping from its previous $9,000 mark to trade above the $5,000 mark in recent days.
However, things started to change on Thursday, March 19, 2020, for Bitcoin and other cryptocurrencies. Bitcoin started Thursday at $5,260 but has since surged by more than 16% to currently trade at $6,284. In just 24 hours, Bitcoin gained over 17 percent. The massive surge in the price of cryptocurrencies saw the general market record an additional $23 billion over the past 24 hours.
Bitcoin wasn’t the only winner in this latest market spike. Bitcoin Cash (BCH) is up by 24% to currently trade at $226 per coin, thus, making BCH one of the best performing amongst the leading digital currencies. XRP (Ripple) and ETH (Ethereum) also went up by 11.8% and 17.7%, respectively, in the past 24 hours.
Interestingly, the massive gains by the cryptocurrency market contradict the situation in the general financial markets. The stock and forex markets are still down and continue to lose points as more countries take drastic actions to curtail the effects of the coronavirus pandemic. As such, these moves have negatively affected their economies, which in turn have greatly impacted the global stock, commodities, and FX markets.
Bitcoin Price Could Continue Higher
Despite the current decline in price, Bitcoin has been profitable so far in 2020. It started the year at just around $4,000 but is up by $2,000, despite reaching a yearly high above the $10,000 mark. The cryptocurrency community is still waiting for the Bitcoin halving event, which will take place in May. The halving event is when the mining reward for Bitcoin is slashed into half. At the moment, the mining reward on the Bitcoin network stands at 12.5 BTC. It would be reduced to 6.25 BTC when the halving takes place in two months.
Historically, a halving event has always been followed by a bull run, with Bitcoin and the entire cryptocurrency market experiencing a massive surge in prices, months or even years after that. This year’s halving isn’t expected to turn out any different, despite the current situation in the financial markets.
More people are buying Bitcoin and other cryptos and holding them in anticipation of the bull run expected to kick-start this year. When that happens, the BTC price could surpass its current price of $6,000 per coin and record new highs.
The giving of US dollars (USD) to the American citizens by President Donald Trump as a result of the pandemic, is likely to increase the spending power of some people, and they might be looking to invest in Bitcoin and other digital assets. The US is not the only country injecting funds into its economy. Canada, the United Kingdom, Australia, UAE, and others are also injecting massive amounts of liquidity into their systems to help sustain the economy. The liquidity injection could play out in favor of the crypto market in the long run.