The first-born cryptocurrency has exhibited a growth by 36% in the past weeks. Its dominance n the market has risen to 67% with a market capitalization of USD 182 billion.
The price of Bitcoin (BTC) exceeded the USD-10,000 barrier during the night of Thursday, May 7th, just four days before the third halving, or reduction by half, of the issuance of the cryptocurrency in its system.
The price of the cryptocurrency reached this all-time high once after February 19th this year, when it traded around USD 10,186 per unit, according to data from Messario.
At the time of writing this article, its price is USD 10,016, with a market capitalization higher than USD 182,000 million and a dominance of 67%, compared to the rest of the cryptocurrencies.
The approach of the halving event could be influencing the increase in the price of Bitcoin, whose issuance will go from 12.5 BTC per block mined to 6.25 BTC. This represents a reduction of 50% in the incentives that miners receive for verifying and registering the transactions on the network.
In a period of 24 hours, Bitcoin appreciated by 9.02%, whilst the rest of the cryptocurrencies also gained ground last Thursday, May 7th. Ether (ETH) traded at USD 212.99 per unit (2.13%), XRP is exchanging at USD 0.218374 per unit (0.17%), Bitcoin Cash (BCH) had an advance of 1.28% for a price of USD 253, and Bitcoin SV maintains a trading price of USD 209.
On the Rise since Its Dramatic Drop
The price of Bitcoin has exhibited an upward trend since it fell below USD 4,000 last March 12th. The world now knows that day as “Black Thursday,” since the price dropped by more than 40% after the World Health Organization (WHO) decreed a pandemic due to the spread of the coronavirus.
Since it reached the bottom almost two months ago, Bitcoin has shown a significant recovery despite the global economic situation. Generalized quarantines and semi-paralyzed economies have given evidence of negative figures in most countries.
Last April 29th, the first cryptocurrency broke the USD 8,000, practically recovering 100% of the losses that it had in March.
The same as the approach of the halving, which is reportedly encouraging Bitcoin’s bullish trend, historical data show that the trading price could recede after the event occurs. It is important to remember that the reduction by half of the issuance of coin occurs every 210,000 blocks of the Bitcoin network or about every four years.
Some analysts have stated that the behavior of Bitcoin will show higher levels of volatility in the months to come. Likewise, they said that an economic recession could cause the price of the first cryptocurrency to fall.
The Bitcoin community has seen the cryptocurrency fall and rise many times since it was born. It has proved to be able to overcome any kind of crisis, like the current world pandemic due to the spread of the COVID-19 disease. By learning more about the behavior of this cryptocurrency, holders will know the best time to sell or buy.
By Alexander Salazar