Bitcoin had been on a very nice run for the past few months. Most of the major news stories that pertained to bitcoin talked about how much it was going up in value. Investors were jumping in to get a taste of the profits that Bitcoin owners were experiencing. The past three months have been a very good time to be a bitcoin owner. However, the good times for bitcoin owners came to a screeching halt last week when the price dipped down to the lowest it had been in three months. Experts think that fears about the coronavirus might have something to do with the sudden crash.
The good news for bitcoin investors is that the price went up slightly. Therefore, the week was not as much of a disaster as it could have been. People who own bitcoin do not have a lot to complain about these days. It is worth a lot more that is was last summer when it bottomed out at around $6,300. It reached a high of more than $10,000 a month ago. There are many experts who predicted that bitcoin would climb far beyond that price. However, that did not end up happening.
It remains to be seen what sort of effect that the coronavirus will have on the overall value of bitcoin. There are many people who have blamed the stock market drop last week over global panic caused by the coronavirus. However, the bitcoin market does not always fluctuate for the same reasons as the regular stock market. The drop in the price of bitcoin could have been caused by a number of different external factors that would impact the global economy. The bottom line is that we might never know why bitcoin suddenly dropped last week. The good news is that it now appears to be on the rise.
Most of the experts have been telling people to hang onto their bitcoin and ride out the low period that it has been on. That seems to be good advice because it is already starting to rebound slightly. The same advice has been given to the owners of stocks. People who sell during a crisis will certainly lose money. However, people who have the courage to hold on to their assets will eventually see a rise in their value. There is a chance they could still sell bitcoin at a higher price if they are willing to wait.