Bitcoin continues conquering new thresholds in its uptrend to recover its value, which lost more than 500% after reaching a high of 19,000 USD on December 17, 2017.
On Monday, Bitcoin reaches a price of over 11,000 USD for the first time in 15 months. Later the price slightly corrected, as of 60:30 a.m. ET is trading at 10,942 USD, representing an increase of 3% for the day.
Bitcoin reached a peak of 11,111.21 USD on Monday, which represent an increase of 13% against Friday. Thus, the cryptocurrency was traded at its highest price since March 2018.
Investors appear to be shrugging off some of the memories from the burst of the bitcoin bubble after it hit a record high of over 19,000 USD in December 2017. The price of the cryptocurrency came crashing down over the course of 2018 and into the start of 2019 where it fell to the low-to-mid 3,000 USD mark.
The bullish of the crypto market in 2019 has already started off with a bang in recent weeks. The price surge is due to two major factors, one is an increasing consensus among the investment community that Bitcoin is a legitimate store of value for the digital age, and two Facebook’s Libra cryptocurrency launch has forced every CEO to take crypto seriously.
Bitcoin is now up more than 170% this year. The rise of Bitcoin has also helped lift the price of other digital coins like Ethereum which has more than doubled this year and Litecoin which has 360% year-to-date gain.
However, large levels of volume failed to accompany the rally, beginning at 97.6 billion USD traded over a 24-hour period and continued to decrease to as low as 67.5 billion USD by days end, meaning that the move was unsupported and a small sell-off from that point out, was definite. The “Real 10” volume – a metric that takes into account trading volume from exchanges reporting honest volume figures as identified in a report by Bitwise Asset Management – currently stands at 46.17 billion USD, a large difference.
Crypto market recap
The crypto market is trading mixed, as most of the Top 10 cryptocurrencies being into the red.
Ethereum also got a lift from its big brother as it finally broke above the 300 USD barrier. The cryptocurrency hit a top of 320 USD yesterday before pulling back a couple of percent today to settle at around 309 USD. Gains were solely on the back of Bitcoin as Ethereum remains slow to recover in comparison.
Ripple’s XRP is down by 1% to 0.4659 USD, as well as Bitcoin Cash, which is traded at 475.92 USD.
Litecoin is performing worse, declining by 2.71% to 136.16 USD.
EOS and Binance Coin are also down by 1.4% and 1.8%, respectively.
TRON is the best performing cryptocurrency today, trading with an increase of 6.2% to 0.0388 USD. Following the increase, the cryptocurrency flipped Stellar for a top ten slot as market cap topped 2.5 billion USD.
Cardano and Monero are also moving into the green, adding 2.1% and 1.1%.
In addition, the total market capitalization rose to a high of 328.053 billion USD, its highest point since July 31, 2018, while the market capitalization for altcoins is down 3.8 billion USD over a 24-hour period pointing to a preference in holding Bitcoin above all else amongst the trading elite.
Can Bitcoin climb to all-time high?
Bitcoin experienced a booming rally in 2017, culminating in a 19,500 USD before declining almost as steeply as climbing at the end of last year, reaching a bottom of 3,258 USD. The cryptocurrency was trading in the range of 3,300-4,100 USD for four months (from November 2018 to March 2019).
The rise in the cryptocurrency accelerated again in April this year. According to a survey by Indexica, the main reasons for this are three – deepening the debate about the Bitcoin, less worry about fraud and a change in the tone of the cryptocurrency.
The market has seen a lot since the last time the Bitcoin crossed the 10,000 USD level.
Also, compared to last year, there are signs of renewed interest from traditional investors in cryptocurrencies and blockchain technology, especially as regards the Facebook, which recently announced its Libra currency, on which the social network is working with a wide range of partners, like Visa and Uber Technologies.
As Bitcoin’s price keeps setting new yearly highs, the question on everyone’s mind right now is whether it’s different this time. Let’s take a closer look at why this rally is nothing like the “bubble” in 2017. As many experts pointed out, BTC going above the key psychological 10,000 USD mark is likely to trigger FOMO (fear of missing out).
Bitcoin broke through into the mainstream in late 2017. At the time, its historic surge to nearly 20,000 USD was driven mainly by retail investors. This time, however, the public is still largely on the sidelines, according to Google Trends. In fact, the number of Google searches for “bitcoin” is only around 10% of what they were in 2017. In other words, retail investor FOMO has not even started yet, which may suggest that Bitcoin price could go much higher than last time.
On the other hand, institutional demand for Bitcoin has soared. As of June 17, open interest at CME Group saw 5,311 contracts totaling 26,555 BTC, or approximately 246 million USD — dwarfing the volumes during the 2017 price peak.
Moreover, network fundamentals better than ever. As Cointelegraph reported on Friday, hash rate hit a new all-time high at over 65,000,000 TH/s. In other words, Bitcoin is more secure than ever and would require an unfathomable amount of computing power to affect the network.
The latest rally to five figures is also happening way before the Bitcoin block reward halving set for May 2020. This is when mining block rewards will be cut from 12.5 to 6.25 BTC, thus reducing the bitcoins minted by miners who are naturally market sellers. Interestingly, the previous halving event occurred in the summer of 2016 — or more than a year before the price skyrocketed. This time, however, BTC/USD appears to be front-running the event, as the halving is still 333 days away.
All this suggests that Bitcoin will exceed the 20,000 USD threshold by mid-2020.