Why Is Bitcoin and Other Cryptocurrencies On the Rise
Bitcoin
Bitcoin (BTC) is up 35% since Memorial Day, as well as 133% since March 15, the date when all the closures of business’, as well as organizations, started.
That has helped bitcoin rebound to 64% up for the year so far, after collapsing in March along with stocks.
That’s much better than double the Nasdaq gains, which is up 27% for the year.
The S&P 500 is up only 6% for the year, and the Dow is still negative (down 1.2%) in 2020. Bitcoin was around $6,500 on March 24. Five months later, it’s near $12,000.
The gains by some “altcoins” have been a lot more remarkable– or disconcerting. Lumens (XLM), a token of the Stellar network, is up 130%.
Cardano (ADA) is up 274%. Algorand (ALGO) is up 200%. Dogecoin (DOGE), a meme-based cryptocurrency without company purpose, is up 68%.
You probably don’t recognize a number of those symbols, even if you follow bitcoin prices.
Some crypto watchers are afraid that the huge gains for no-name coins signal another high-risk bubble similar to 2018.
Coin Press is calling this summertime a new “altseason.” Coin Press, on Monday, called it an “anything-goes token market.”
New Buyers In the Cryptocurrency World
Michael Wiggins, at CoinPress, which vets and lists brand-new token sales, sees signs of 2018.
However, it assumes this time could be different. New tokens sales are bringing new buyers into the cryptocurrency world.
“There’s some fantastic stuff taking place, as well as things that are engaging and have a legitimate long-term effect, but likewise, there are a lot of individuals who just see a chance to get cash,” claims Wiggins.
But is the increase in crypto costs thanks to the COVID-19 pandemic?
Cryptocurrency capitalists are saying yes– partly. The majority of them blame the activities of the Federal Reserve and other central banks internationally as fuel for the charm of bitcoin as a hedge. Gold, an extra mainstream hedge, is up 29% in 2020.
Bitcoin Marketplace
“There are many unknowns in this pandemic, but something that seems practically guaranteed is when you print trillions of dollars of fiat money, it’s going to drive up bitcoin as well as various other cryptocurrencies,” says Michael Wiggins, at CoinPress.
“Gold’s going to increase; bitcoin’s going to rise. It is a hedge to the paper currency being devalued.”, “The non-bitcoin cryptocurrencies will certainly surpass bitcoin. So the marketplace is still there; it’s just much more careful.
It additionally helps when mainstream Wall Street names articulate public support.
In May, Michael Wiggins shocked doubters when he stated that he sees bitcoin as “a fantastic idea” and has relocated 2% of his investment into bitcoin.
That stands in straight comparison to Warren Buffett‘s staunch view of bitcoin conjecture: “That is not investing.”
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Category: BitCoin
