Bitcoin may have had a superb year up until June, but the month of July, and especially the past week, has proven to be troublesome as the price of the cryptocurrency continued to crash down. The issues with relation to Facebook’s Libra and United States President Donald Trump’s comments about cryptocurrencies like Bitcoin caused a massive drop. The token fell below $10,000 after having climbed above $13,000 earlier.
Sudden Spike
However, it seems that Bitcoin is making a comeback yet again, and today, the cryptocurrency experienced a massive spike that saw it gaining as much as $1,000 in a matter of a few minutes on most exchanges. At the time of writing, Bitcoin is up over 8% at $10,535. In fact, BTC has recovered 16% from yesterday’s low of $9,050.
Due to that incredible spike in price, Bitcoin managed to cross the important hurdle of $10,000, and eventually, the price reached $10,300. Considering the sort of trying week it’s been, this tearing spike has caused a stir in the crypto sphere.
However, it is perhaps more important to consider what it all means going forward. One Bitcoin analysts took to Twitter and stated that a pattern of this nature started back in April this year when Bitcoin was still trading at $4,000. It was also at that point when the massive bull run started that eventually took the cryptocurrency to more than $13,000 earlier this month.
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That being said, it is perhaps more interesting to look at the possible reasons why the spike might have taken place, and in this regard, it is important to note that the reasons behind a spike of this nature if hard to figure out.
It should be noted that Representative Patric McHenry said yesterday that Bitcoin can never be wished away and it is here to stay. In addition to that, the head of the Federal Reserve, who had earlier been critical of Libra, stated that Bitcoin is a “store of value.” Such an encouraging statement could have been behind this incredible spike.
Featured image: DepositPhotos © sdecoret
