Bitcoin has surged nearly 25% in two days
Like most other cryptocurrencies, Bitcoin (BTC) has been in a lull over the last four months. It crashed from $19,587 in December 2017 to a low of $3,169.5 in December 2018.
However, Bitcoin has spiked nearly 25% in the last couple of days, breaching the $5,000 mark for the first time since November 2018. There’s a lack of a clear catalyst for the surge, but it was part of a broader rally in digital currencies.
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The cryptocurrency hangover has affected many companies
The huge slump in cryptocurrencies last year caused cryptocurrency companies to cut back on their fundraising through initial coin offerings, which became ridiculously popular during the crypto boom.
Bitmain, a major supplier of cryptocurrency mining equipment, canceled its Hong Kong IPO application due to the cryptocurrency bust.
The slump came last year due to several major regulators giving the thumbs down to cryptocurrencies such as Bitcoin, which led to a setback for companies such as NVIDIA (NVDA) and AMD (AMD), whose chips were used to mine cryptocurrencies. These stocks tanked late last year due to the so-called cryptocurrency hangover.
So far, cryptocurrencies have been a highly speculative bet. They’ve made people millionaires overnight, but they’ve also caused devastating losses. Those interested in investing in cryptocurrencies shouldn’t part with any money they’re not prepared to lose.