In recent weeks, the cryptocurrency market has been a hive of activity. This is largely in part to Bitcoin price’s resurgence of late. And what a resurgence. The world’s largest digital asset by market cap is currently selling for $8,724 USD per coin (to press time and according to coinmarketcap.com). It has grown an astronomical 186% in little under 5 months.
Bitcoin Price – A Fall From Grace
As Bitcoin heads towards the $9k mark, it nears almost half of its all-time high of $20,000. Hit in late 2017, those glory days were soon wiped clean in 2018—a bearish downturn took over and across the year, the coin lost 70% of its value.
So at it’s highest high, the digital coin was worth over $20,000. But jump forward to early 2019 and the coin was scraping lows of $3,250 approx.
As expected, the recent comeback has analysts talking and its no surprise. Many now believe that this bull run will eclipse Bitcoin’s iconic 2017 one. There are several key differences between that time and now that make this plausible.
So let’s check out some of the main reasons analysts expect this run to last.
A New Level of FOMO
FOMO, or the Fear Of Missing Out, has always played a role in dictating Bitcoin price. It’s simple psychology that people don’t want to miss out on a good thing. But what is very interesting for Bitcoin this time around, is that investors now know that a climb to $20,000 is possible because it has done just that before.
This time, we know a climb to $20,000 is possible, therefore it’s probable that investors will flock to Bitcoin in their droves for fear of missing out on an expected massive rally.
Bitcoin now has a greater variety of platforms than before and this should impact on Bitcoin price. These give investors exposure into the crypto markets and, simply put, make investing in Bitcoin much easier now than in 2017.
Platforms such as Bakkt, Fidelity and Square, among many others, have added support for Bitcoin in their own way. This leads to an overall climate that is more accepting of the coin and encourages other institutions to jump on board.
The Impending Halvening in 2020
There is something called “the halvening” on the horizon for Bitcoin. This is an event written into Bitcoin’s code and it will cut all mining rewards in half. Expected to happen in 2020, it will effectively diminish supply. As with anything, as supply goes down, demand and price tend to go up and we can argue that Bitcoin is no different. So this current run may be spurred on by miner’s and investors hoarding as much Bitcoin as possible now before the halvening occurs and supply is lessened.
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As it stands, there is no one definite reason as to why this Bitcoin rally began. And there are even more guesses if it will continue. Industry sentiment is bullish of late, however, Bitcoin remains a volatile investment and sudden declines are easily around the corner. So be aware investors!
Do you think Bitcoin price will continue to climb? Are we on the verge of eclipsing Bitcoin’s all-time-high price?
Featured Image: Deposit Photos/SectoR_2010