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Bitcoin Trying to Crack $7,000 Again

April 16, 2020 at 12:06 by Matt Jackson

Bitcoin has been trading steadily at around $6,800 for the last week but, having dipped to $6,500 yesterday, the world’s largest cryptocurrency has made a positive move to take $7,000. Bulls will be hoping that it defends the position and flips resistance to support while waiting for the major Bitcoin halving event that is set to occur next month. However, while prices have steadied following the outbreak of Coronavirus and the subsequent calming of market nerves, the continued economic upheaval is still playing on traders’ minds.

Following the outbreak of Coronavirus and the global response to the outbreak, which has seen approximately one-quarter of the world’s population under some form of restricted lockdown, Bitcoin and cryptocurrency prices saw hyper-volatility. This volatility has subsided over the past week and Bitcoin has been trading in a range between $6,700 and $6,800 with occasional breaches to the upside and downside.

Coronavirus is still at the forefront of traders’ minds. Some cryptocurrency proponents have indicated that fiat currency is becoming difficult to value. The US government has mooted plans to give every adult $2,000 per month in a bid to ensure that every working-age adult has a reliable form of income. The plans are far from confirmed, but they have raised concerns that the dollar will become impossible to value, thereby increasing the benefit of cryptocurrency. If The Emergency Money for the People Act goes ahead, it could lead to further demand for Bitcoin and other major digital currencies.

Meanwhile, the Hut 8 Mining Group has joined Riot Blockchain in warning that the novel coronavirus is impacting their mining business. CEO Andrew Kiguel has said that the company is unable to pinpoint an exact time when new mining machines will be delivered to their mining farms. They had expected the machines to be delivered sometime in March and April but said that deadlines have passed and they have no idea of when the machines will arrive.

Miners and mining farms will want to take delivery of the new machines as soon as possible, in order to mine Bitcoin before the halving event in May. The halving event sees the rewards for miners halved, which will mean a reduction in operating profits. While many people expect the event to lead to an increase in price, this is the third event of its type, so some analysts are keen to point out that the potential increase may have already been built into current prices.

The halving is certainly of importance to traders. Search volume for the term has increased to all-time highs, suggesting that more people than ever are researching the event. One report by Glassnode suggests that investors have already moved a lot of Bitcoin from exchanges to wallets, suggesting that they are prepared for the halving and adopting a longer-term investment approach.

At 13:00 GMT, Bitcoin (BTC) had added 3.67% to its price to trade at $7,018.56 while Ethereum (ETH) has increased by an impressive 7.9% and is changing hands at $169.51. Ripple (XRP) is up 2.22% and now costs $0.189. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are trading at $228.90 and $192.42 having increased by 3.33% and 2.65% respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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