After the cryptocurrency market crash, Bitcoin, the largest cryptocurrency, climbed back to the $39,707 mark as a result of market recovery. During the market crash caused by the Chinese Government's ban on cryptocurrency, the price of one Bitcoin plummeted to $30,000 along with its rivals Ethereum and Binance Coin. During the year so far, this was the worst-hit that Bitcoin faced.
Alongside the market crash, Elon Musk's tweets criticizing Bitcoin's energy consumption also acted as an agent to create more downfall. In his tweet, he said that Tesla Inc is suspending payments using Bitcoins. This left investors perplexed, which led to further speculations about the legitimacy of using cryptocurrencies.
What became a red flag for Bitcoin investors was the fact that these events ended the crypto coins' "above the 200-day average" streak.
In February, Elon Musk declared that $1.5 billion of Tesla's corporate budget will be used to buy Bitcoins and Tesla would accept the cryptocurrency as a mode of payment. But the digital coin's volatility and environmental impacts have dented investors' trust.
Currently, Bitcoin's value is 50% short of its mid-April high of $65,000. While one group of investors is focussing on short-term investment, long-term investors are still optimistic about Bitcoin's potential. Since the past year, Bitcoin is up by 358% and its rivals, Ether, are up by more than 1300%, and Dogecoin by 14000%.
According to the data by many cryptocurrency data sites, it is evident that Bitcoin is recovering, slowly but surely. The coin still has a long way to go before reaching or surpassing its all-time high but many eyes are still glued on Bitcoin's performance. As per Analytics Insight's research, Bitcoin is first among the top 10 cryptocurrencies with high growth potential and many global companies like Mastercard still accept it for payments.
Right now, if you are interested in investing in cryptocurrencies, your best bet is still Bitcoin, if you have the capital. If not, here are the top affordable cryptocurrencies you can choose.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.