Bitcoin passed the $500 mark for the first time in weeks this morning. At press time, the price stood at $513.93 – down from a peak of $518.22 a short time earlier.
Apart from a brief spike in mid-April, bitcoin has been trading south of the $500 mark since late March.
What comes next?
It is difficult to make any predictions, but the renewed optimism and positive media buzz are encouraging. Bitcoin got a lot of negative coverage following the arrest of Charlie Shrem, the collapse of Tokyo-based bitcoin exchange Mt. Gox and regulatory clampdown in China.
All these factors contributed to a massive price slide earlier this year. However, for all the talk of bitcoin volatility and hype-fed bubble, the price has remained relatively stable since the slump.
A month ago the price stood at $484, a month before that it was at $564 and on February 22 it was $604. Compared to national currencies, these are still significant swings, but they pale in comparison to what the market went through in November and December.
It remains to be seen whether this will be yet another short-lived spike, but the overall trend is positive for the time being.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.