The strong concurrent in bitcoin and altcoins reemergence is stronger than experts have predicted. The sudden skyrocketing value mirrors the bubble phenomenon in 2017. Experts further suspect the coronavirus pandemic along with actions made by the Federal Bank and other central banks globally may have triggered the resurrection of bitcoin.
The current state of bitcoin and altcoins: an outline
Yahoo! Finance reports that bitcoin recorded a 64% up for 2020 so far. Bitcoin now values at near $12,000 after valuing around $6,500 on March. The surge happens after the cryptocurrency experienced a slump in March along with stocks. Compared to Nasdaq’s 26% incline for the year, bitcoin’s gain is undoubtedly immense.
The reemergence is not only limited to bitcoin, altcoins are reportedly gaining much more. Yahoo! Finance discloses that Ether, referred as the no.2 cryptocurrency by market cap, inclined 210% in 2020. Other altcoins also undergo a similar result. Stellar Lumens is up 130%, Cardano achieves higher with 274%, and Algorand jumps 200%. Even Dogecoin, which started off from a meme and basically has no purpose, gained a 68% rise.
Triggers to the resurrection of 2017 phenomenon
This phenomenon is thought to mirror the bubble in 2017 by crypto onlookers. This time, Coronavirus pandemic partly contributes to the ordeal. The ways the Federal Bank and other central banks globally function amidst the pandemic also affect the appeal of bitcoin. In fact, it may have contributed to the increase of gold’s value by 29% in 2020.
Andy Bromberg, president of Coinlist, suggests investors to keep on being cautious in this time period. With good things coming out, fishy scams will also emerge. As this phenomenon can be just another bubble that will soon burst, a lot of people are also taking this chance to grab cash, Yahoo! Finance quotes.