Could Bitcoin’s Mini-Bull Run back to $8,000-$9,000 Range End Like The 2017 Bull Market?
Bitcoin (BTC), the most popular digital currency in the market, has had a very positive year in 2019. During that time, the price of the virtual currency more than doubled and reached the highest point in more than 8 months. However, some users are wondering whether Bitcoin could eventually drop as in 2017.
Could Bitcoin Drop As In 2017?
After a very negative 2018 in which the price of Bitcoin dropped over 80 percent, the virtual currency was able to start growing and reach $8,800 a few hours ago. This is the reason why there are several analysts that believe that Bitcoin could soon reach $10,000.
Bitcoin started this bull run when in April, the digital currency moved from $4,100 to $5,100 in just a few hours. After this large price movement, the virtual currency continued its upward trend and surpassed $6,000. Bitcoin remained above this price that was a psychological barrier for it to surpass. Just in May, Bitcoin surged 64 percent.
Now, Bitcoin is getting closer to $9,000 and other investors are already thinking about $10,000 and even larger numbers. The main question is whether this bull run that Bitcoin experienced could end up with the digital currency falling as in 2017.
The current Bitcoin bull run has several similarities with what happened in late 2017. The year started with Bitcoin being traded around $1,000 and ended close to $20,000. However, the digital currency then fell in a year to $3,200. Moreover, the market capitalization fell and reached $100 billion as well.
However, there are some reasons that make us believe that this is different than in 2017. First of all, Bitcoin is going to be halving as soon as in May 2020. That means that miners will be receiving just 6.25 BTC per block compared the current 12.5 BTC they are receiving for processing network transactions. With a lower issuance of new BTC and a growing demand for it, the price of Bitcoin is expected to increase.
In general, Bitcoin starts growing a year before its halving event. This is something that can be seen now with the price increase that we have seen in recent months. In addition to it, there seems to be a growing interest in virtual currencies from institutional investors. The Intercontinental Exchange (ICE) is working on the Bakkt platform and Fidelity Investments is also trying to offer crypto-related services to financial institutions and larger investors.
There are other firms such as AT&T that are already accepting crypto payments for users to pay their bills. With a larger number of individuals using Bitcoin and companies creating services around them, Bitcoin and the crypto market, in general, is expected to keep expanding in the future. This does not mean, however, that there cannot be negative periods in which Bitcoin experienced price drops or when it operates sideways.
According to CoinMarketCap, Bitcoin is being traded above $8,700 and it has a market capitalization of $154 billion.