A few years ago, Bitcoin plunged to record lows and there were many who doubted that it would recover in the short term. The panic led many people to sell off all their Bitcoin to try and get money back before it was too late. Well, they were wrong.
After reaching its all-time high in late 2017 at a price of $ 19,700, the price of Bitcoin plunged into the void in December 2018, to just $ 3,200. Most sold, but the smart ones bought.
At the time of this writing, Bitcoin is trading above $ 18,000, and it seems that before the end of the year it could end up surpassing its all-time high. However, a study on the behavior of Bitcoin in 2017 hinted that it could have been the result of market manipulation.
Part of the resurgence of Bitcoin may come from mistrust of conventional banking, the boom in online commerce, and all the uncertainty that exists in times of pandemic. Likewise, large companies are beginning to put millions of dollars into the purchase of Bitcoin, and we must also value the change of idea of PayPal regarding cryptocurrencies.
You have to take a look at the movements of large companies. Business intelligence firm MicroStrategy bought an additional 175 million in Bitcoin in September, and Square invested $ 50 million in October. Something is moving.
Even so, the cryptocurrency market is very volatile, which can end up rising to very high figures to fall days later to minimum records. That is why special care must be taken when investing in this type of virtual currency.