At press time, bitcoin – the world’s number one cryptocurrency – is trading for over $8,500. This marks a massive rise from yesterday, when the currency was trading for just under $8,200, and a $300+ spike is being welcomed by enthusiasts everywhere.
Bitcoin Jump Is the First in Some Time
Roughly two weeks ago, bitcoin and its altcoin cousins suffered from what was arguably one of the worst bloodbaths in some time. The negativity doesn’t stem from how much bitcoin lost necessarily, but rather in how quickly it depleted in value. The currency dropped by over $1,400 in just a matter of minutes, falling from around $9,500 per unit to just over $8,100. There was no explanation regarding why the currency was falling, though at the time, Bakkt – the crypto trading platform designed for institutional traders – had opened to lackluster appeal.
Perhaps bitcoin is finally getting over this impasse, though we can’t celebrate too much just yet. While the gain is solid, it has only been one day, and there are still many changes needed before bitcoin can be considered ready again to take on serious investors. A spike back up to the $9,000 (or hopefully $10,000 range) would likely do the trick. Enthusiasts probably need to see that bitcoin is returning to form prior to its sudden demise. From there, higher trading could potentially come back in spades.
Naturally, analysts are now weighing in on why bitcoin could have jumped so suddenly, and what’s in store for the currency over the remaining months. Zhao Dong, a shareholder of Bitfinex, believes that the crypto market will potentially incur significant spikes throughout the rest of 2019. He explains:
The next three months could be the last opportunity for bottom fishers, and after that, the crypto market will enter spring and then summer, estimated to rally together with China’s stock market in 2021.
Could the Rest of the Year Hold Solid Gains?
Indeed, the final three months of the year really seem to be readying themselves for a monster bitcoin rally. What we’ve kind of witnessed throughout 2019 is behavior that bitcoin exhibited in 2016, in which the currency incurred several smaller spikes throughout those 12 months before finally (albeit briefly) hitting the $1,000 mark at the time of Donald Trump’s election to the White House.
The currency is at a higher place than where it stood in 2016; thus, the spikes its been experiencing since April have been larger but are still small in comparison to where bitcoin stood at the end of 2017. Granted it remains in its present loop, we could potentially see bitcoin jump back up to its “summer numbers” by the end of the year before hitting the “big time” in 2020, which also happens to be the time of another election, and as we’ve witnessed, elections arguably work in BTC’s favor.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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