Bitcoin’s Price Increase Is Different Compared To 2017 Says SFOX Volatility Snapshots Report
- Bitcoin continues growing in the market and analysts are wondering whether it will crash
- SFOX considers that Bitcoin is in a much stronger position than the bull market in 2017
Bitcoin (BTC) has been expanding over the last months and the digital currency seems not to stop growing.
During the last hours, Bitcoin surpassed $12,700 and the market remains very excited about the future of the digital currency. According to the crypto prime dealer SFOX, the market has changed compared to 2017.
Bitcoin Behaves Differently Compared To 2017
In the latest SFOX Volatility Report post in which it explains how the price increase that Bitcoin experienced during the last weeks has many crypto experts and newcomers comparing the market with what happened in 2017 when Bitcoin reached $20,000.
The SFOX Report said:
“The relatively sustained increase in BTC’s price over the past couple of weeks has many crypto veterans and newcomers alike comparing the state of the market to the bull market of late 2017. But the full picture of the similarities and differences between BTC’s two $11,000+ moments illustrates how far crypto has come in a relatively short time — and where it still has opportunities to mature.”
This is not like in the past. When Bitcoin surpassed $11,000 in 2017, people and investors believed that the market was going to be falling at any moment, but Bitcoin surged above $19,000 and after it, it fell. There are different companies in the market that are getting interested in the space and that are investing in different crypto projects.
Facebook, for example, announced it is working on a cryptocurrency called Libra that is expected to allow users to perform transfers, make transactions and process payments in a fast and seamless way using WhatsApp or Facebook Messenger.
There are other firms such as IBM, Wal-Mart China or MoneyGram that are already working with different blockchain networks and cryptocurrencies, including Stellar (XLM), VeChain (VET) or XRP, respectively. In addition to it, Fidelity Investments, TD Ameritrade and the Intercontinental Exchange (ICE), are all working in order to offer services to large investors that want to enter the crypto market but do not know how or do not trust the current retail solutions.
According to the report, there are large funds and companies purchasing Bitcoin rather than retail investors. That means that coins are expected to be held for the future and they will be determining the price of Bitcoin. If those large funds and investors hold their coins rather than moving them in the market, supply and demand will be playing an important role in affecting prices in the space.
Of course, when there are periods of time in which users hold their coins and wait for the price to skyrocket, then the question is whether there is enough liquidity to deal with that price increase. As SFOX wrote, institutions are buying Bitcoin and expect the digital asset to enter a new bull market in the near future.
Moreover, the market is much more mature than what it was back in 2017 and that fundamentals are also playing an important role in this bull run.
At the time of writing this article, Bitcoin is being traded above $12550 and it has a market capitalization of $223 billion according to CoinMarketCap. The virtual currency experienced a price increase of 11.14% and it could reach the same market dominance it had earlier in 2017.
Bitcoin (BTC) Live Price
1 BTC/USD =$58,226.4596 change ~ -0.88%
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