While most stock indexes have taken a hit lately, Bitcoin is on point and has proven its bubble hasn’t burst, at least not yet.
After a 53% increase on the 9th of February, the FUD that was plaguing the markets finally began to dissipate. And, in a bullish market, everybody’s favorite cryptocurrency has now finally crossed the $10,000 threshold once again.
After sitting around the symbolic $10,000 mark or a little while, Bitcoin then resumed its course and reached $10,900 before meeting a bit of resistance. But not for long.
Now, at the time of this writing, Bitcoin is sitting around a nice and stable $11,000 per unit.
Bitcoin at $11,000 USD
Bitcoin has now reached an impressive milestone even though Virgin Money has recently followed in the footsteps of the Bank of England banning the purchase of cryptocurrency using a credit card. More recently, India has taken a stand and has decided to take measures prohibiting the use of cryptocurrencies within their borders.
However, the latest developments on the stock market have gone on to reinforce Bitcoin in its position as a leader. While the markets were undergoing massive loses (the Dow Jones and the S&P 500 suffering a 5% loss), Bitcoin managed to climb its way up the slope and gained an impressive 53% on Friday, February 9th. And, while many were expecting its value to take another dive, it continued to climb until it peaked at $11,000.
At the same time, with trouble on many emerging markets, there has a lot of movement of US capital towards safer, more secure investments.
Cryptocurrency: A Safe-Haven for Investment Capital
Those who support cryptocurrency have taken advantage of the situation and are driving home the fact that Bitcoin, because its independence from the global financial system, can function as a lifeline in times of need. Supporters believe that when the stock markets are in periods of decline, virtual currencies can function as a safe-haven for investment capital. An argument that, even if it is true, is not in line with the beliefs of the US Department of Counter-Terrorism.
In recent reports, mentions have been made of countries, such as North Korea, developing digital currencies as a war fund. Adding to this, there is also the face that the United States are concerned about losing capital to cryptocurrency markets. Now, its only a question of whether the Bitcoin bubble will pop.
Still, even with recent developments, the debate on when or if the Bitcoin bubble will burst is still a valid concern. Rising prices have still not been able to calm fear in the United States, who continue to take restrictive actions against the use of cryptocurrency.