Here’s some good news for those who were disheartened with Bitcoin’s performance for the past few months. Earlier this week, Bitcoin saw its strongest trading day, and the price had now touched $5,240 per bitcoin on the Luxembourg-based Bitstamp exchange, the highest since November last year when bitcoin’s value reached almost half. Moreover, after the incessantly falling prices since November last year, the fading attention of mainstream media is again back to bitcoin and cryptocurrencies.
Since last year, the crypto world was abuzz with speculations if Bitcoin (BTC) is a bubble or still a stable investment. The price fluctuation is nothing new in the crypto market as BTC was traded at an all-time high of almost $20,000 back in December 2017 and declined to a new low at $3,687 in December 2018. In fact, many times, Bitcoin has been announced as a “dead coin,” but it always managed to make a comeback.
Is Bitcoin (BTC) Dead?
Certainly, 2018 is considered a rough year for cryptocurrencies as Bitcoin (BTC) has lost around 60 percent of its total value. The total market shrank from near $800 billion in January to about $199 billion. However, this week has restored faith in cryptos, with improved prices as Bitcoin surged to 25.74%, Ethereum by 18.76%, and Litecoin by 53.20%. With this, now investors, traders, and speculators are again entering the Bitcoin and cryptocurrency markets.
Despite the price struggle for the past few months, Bitcoin supporters and blockchain enthusiasts like Twitter’s Jack Dorsey and Tesla’s Elon Musk always remained optimistic that the coin will continue to grow. Now, this week’s price surge has sent a positive signal that the game is on for bitcoin, ethereum, ripple, and litecoin. According to Nicholas Cawley from the DailyFX team, “The recent surge in Bitcoin has been sparked by a large buy order – rumored to be around $100 million – that sent BTC straight through technical resistance ($4,235) that had been in place since the start of December 2018. The lack of volatility in Bitcoin over the last few weeks has kept prices in check, and low volume markets are always more susceptible to sharp moves than more liquid markets.”
If we look at reports, in 2018, Bitcoin ‘Died’ 90 times and around 1000 Altcoins are already ‘Dead.’ For this reason, many investors are pessimistic about the crypto market’s near future. However, numerous financial analysts always maintained that crypto is not dead. There will be more widespread adoption, by both the private and public sector, of blockchain technology and related technologies. In fact, some crypto enthusiasts like Venture capitalist Tim Draper still believe that cryptocurrencies are the future of all currencies and that Bitcoin will hit $250,000 in a matter of years.
How Long It Will Take For Bitcoin To Reach 20K?
It’s difficult to say how huge the next recovery would be and when it would be. However, Bitcoin (BTC) is expected to take a major bullish run as numerous investors and traders are looking for a sharp recovery of the crypto market. According to Joel Kruger, currency strategist at LMAX Exchange, “Our 2019 outlook for Bitcoin is far more constructive than what we had been projecting for 2018. As 2017 came to a close, we had warned Bitcoin had rocketed ‘past the point of rational appreciation’ and highlighted massive downside risk in a bubbling market with far too many holes (regulation, development, hard forks).
As far as touching the $20,000 mark again is concerned, Kirill Bensonoff, a technology advisor, says, “For Bitcoin to hit $20,000 in 2019, we would need a major catalyst, and I believe the only one with this much force would be ETF approval,” says Bensonoff.
Note: Investing in cryptocurrencies is subject to market risk, and the writer doesn’t endorse any such digital coin.