Bitcoin is showing early signs of recovering from the massive crash in late May that wiped half of its gains this year. On Wednesday, the world’s largest cryptocurrency crossed the symbolic benchmark of $40,000 (roughly Rs. 29 lakhs) after its biggest single-day jump in six weeks on Monday. The digital currency on Thursday appeared to be retaining most of its gains this week and showing stability in a market that has otherwise remained volatile for the past two months. Analysts see the recent uptick in Bitcoin’s value to be backed by the positive remarks of influential investors including billionaire CEO of Tesla and SpaceX Elon Musk.
Bitcoin, the world’s oldest, largest, and most popular cryptocurrency, had hit an all-time high of nearly $65,000 (roughly Rs. 48 lakhs) in mid-April. Since then, the cryptocurrency market has crashed twice and most digital coins, including Dogecoin and Ethereum. have lost a majority of their gains this year.
For the most part of this month, Bitcoin, which has an estimated market cap of $741.69 billion, has continued its downward spiral and remained around $34,000 (roughly Rs. 25 lakhs) until the middle of this month, according to CoinDesk data.
Between July 12 and 14, Bitcoin price experienced a steep crash in its value, plunging to $32,000 (roughly Rs. 23 lakhs). On July 15, it recovered briefly but then again continued to slide hitting the $30,000 (roughly Rs. 22 lakhs) mark on July 19. For the next two days, it remained below the threshold, raising anxiety among investors.
However, Bitcoin started stepping up on the ladder again and reached the $34,000 (Rs 25 lakh) mark on July 25, after a gap of 10 days. This happened around the time when Musk had said that he personally owns Bitcoin and generally supports it despite concerns about its environmental impacts – a positive review from the tech tycoon weeks after criticising the digital coin on Twitter for being energy-intensive and driving up fossil fuel use.
On July 26, Bitcoin gained further to get past $38,000 (roughly Rs. 28 lakhs). After a brief slide on July 27, it has now gone past the $40,000 mark. At the time of writing this report, Bitcoin was trading at $40,094, according to CoinDesk.
Bitcoin has jumped nearly $10,000 (Rs 7.42 lakhs) in just 10 days. Still, it’s too early to say whether it is out of the woods yet and ready for another bull run.