It’s encouraging news for investors, but there’s no way of knowing whether the digital currency will rise further or fall off a cliff
The huge bitcoin price crash, which saw the cryptocurrency lose almost half of its value in a matter of days, appears to have stopped – at least for now.
Bitcoin declined spectacularly at the beginning of February, falling from $10,000 to $6,000 in just four days.
The price plunge has now stopped, and bitcoin appears to be making a slow recovery.
It is currently worth $8,490, according to the Coinbase exchange, its value having increased by more than 25 per cent over the past 24 hours.
That’s encouraging news for holders of the cryptocurrency, many of whom would have feared the worst when its price started tumbling last Thursday.
However, bitcoin is notoriously volatile, and there’s no way of gauging whether it’s on the verge of rising further or dropping off a cliff.
Just 24 hours ago, all of the top 100 digital currencies by market capitalisation were in the red.
At the time of publication, they are all in the green. All but one of the top 20 have experienced double-digit gains.
Bitcoin and other digital currencies have declined over recent weeks, amid fears that trading could be banned in several countries around the world.
South Korea is no longer allowing people to trade bitcoin and other digital currencies anonymously, but has said it isn’t planning to ban cryptocurrency exchanges, despite numerous hints that this was on the cards.
Comments made by Theresa May suggest the UK government could introduce similar measures, and the US government has also said it is concerned about bitcoin’s popularity amongst criminals.
Bitcoin’s price skyrocketed in 2017, and came close to hitting the $20,000 mark in mid-December – more than twice the amount it is currently worth.