Bitcoin prices have reversed again above the critical $6,000 mark. This has happened much to the chagrin of the naysayers. So many skeptics have said (both in print and on paper) that COVID-19 had imperiled cryptocurrencies.
The great thing is that Bitcoin’s price reversal means that it is business as usual for the digital asset. It may even get better than previously thought. The stay-at-home restrictions have led to many unemployed on a global scale. Centralization is failing and new entrants to the crypto-space are just around the corner.
On March 12th, 2020, prices plunged below $4,000. It had little to do with the markets as there were no fundamental movements at the time. BitMEX suffered an attack from hackers. About $750 million was dissipated within a few minutes. The crypto space freaked out.
We all know how the crypto space can be so incessantly volatile. That week was just another day in crypto land. In the real world, everyone was flying off the handle as well. The financial markets had gone to bits. The masters of the financial universe had turned to hobos, looking for a place to perch on and perhaps thought that the crypto space was a great place to roost.
They also said that the cryptocurrency world is gone as well. Mass-market psychology doesn’t apply to cryptocurrency markets. The prime reason is that cryptocurrencies currently can never go totally to zero both in quantity and price. Yes, it can go to the negative territory for a minuscule fraction of tokens, but the possibility of recovery always exists from a mathematical perspective.
The futures markets cleared earlier this week and things went back to normal. Liquidity was restored and everyone is wondering when Bitcoin will test $10,000. Investors still have confidence in cryptocurrency markets due to their trustless nature. Thus, the “safe-haven” status still stands.