Bitcoin Price Stays Above $10k Despite the Media FUD

It has been a tough start of the year, not only for bitcoin, but also the entire cryptocurrency market. With bitcoin hitting an all-time low of slightly above $6k on 6^th February, on 15^th February, it was trading above $10k. This bullish run came as a surprise even for experts as they had predicted a resistance of $10k, which would be difficult to break for bitcoin. However, it has soared past that to trade above $10k, which is the highest since December. Other coins in the top 10 showed a strong upward movement in price gain with Litecoin being the highest climber. The media fear, uncertainty and doubt (FUD) has contributed to the huge dip experienced across the cryptocurrencies, which suffered a loss of more than 50% in market cap.

The bubble analogy

Bitcoin has always been branded as a bubble, which will burst sooner than later. In the past, bitcoin has crashed over a dozen times, but it has always found a way to rebound. This was experienced about a week ago when it almost traded below $6k due to the massive sell off. However, the selloff has slowed down in the last 24 hours when bitcoin started to trade above $10k. This shows persistence in the digital currencies despite, negative news being circulated by the mainstream media about the brink future of the crypto market.

Ban by banks on credit purchases of digital currencies

Citibank and JP Morgan Chase bank have decided to buy into the volatility of the cryptocurrencies. They term them as being too risky and thus it does not make sense for their credit card holders to borrow in order to buy bitcoin. In that case, they have moved to ban all credit purchases for bitcoin and other cryptocurrencies. However, bitcoin and altcoin investors have multiple options through which they can still buy digital currencies and advance their agenda. The banks, in the category of banning credit purchases on cryptocurrencies, did not impose a ban using debit cards, bank wire and bank transfers among others.

Complaints by Coinbase customers

Coinbase has been at the center of controversies from its customers who have accused the largest crypto exchange in the U.S of stealing from them. On top that it has been accused of withholding bitcoin withdrawals among many other complaints. This has been ongoing for the last couple of months. In its responses, Coinbase said that the overcharging of its customers may be due to the fact that top banks have banned the purchase of digital currencies using credit cards. Coinbase’s customer service has been poor and it may be due to the over 10 million number of customers the exchange serves.

In the midst of Coinbase’s problems and poor customer service, other players in the market have seen this as a great opportunity to thrive. Square and Robinhood, have taken quite a bit of leap towards solving some of the major issues customers at Coinbase are facing. Square has an app that enables customers to transact in bitcoin freely, while Robinhood enjoys serving more than 1 million cryptocurrency investors.