Bitcoin has seen a bit of a rebound lately. This has been very good news for all of the people who have money invested in it. There are many people who are wondering how long that bitcoin will keep going up in value. There is no secret that bitcoin is very volatile. It has earned that reputation over the past few months. It did go over the $10,000 mark and had investors all around the world jumping for joy. However, their joy did not last for long. It then started a very steady fall. However, it rebounded during the last week and seems to have stabilized.
It is very hard to determine if the bitcoin climb is going to be a temporary thing. Experts believe that the trend will keep going for another week at least. There are basing that assumption on the fact that bitcoin has had very similar periods in its history. The problem with that logic is that bitcoin does not usually follow historical trends. Its value fluctuates wildly. It fact, this is the reason why people have opted to stay away from bitcoin as an investment. They are afraid of a commodity that is nearly impossible to predict.
There were a large number of bitcoin owners who were selling at the same time. This is one of the reasons the price plummeted not long ago. However, those people have stopped selling and the price has gone back to a respectable number. Panic selling is never good for the value of any commodity. Bitcoin is no different. How long the price of bitcoin keeps going up will have a lot to do with investor confidence. There are also world events to take into consideration. The value of bitcoin will be impacted by how many people start to use it amid panic over the coronavirus crisis.
Bitcoin has been very popular in countries like Venezuela that have had big problems with their banking systems due to the virus outbreak. That is expected to be the case in other countries around the world if the outbreak gets much worse than it already is. It remains to be seen how much longer the virus will remain a problem. Even a very optimistic projection would have many parts of the world in lockdown for at least another month. During that time, many people may start to buy bitcoin because they are nervous about the banking system.