At the beginning of the year, the cryptocurrency market was still deep in the bear market and even though there was still hope, there weren’t many people who were sure what was going to happen or when it would end. The crypto winter started moving slowly towards spring when in early April, Bitcoin picked up and began its surge.
Now, Bitcoin has surged past its low points at the beginning of the year and more than doubled in value even hitting $13,000 before it retraced back below the mark to $12,426 where it currently is at the time of writing. Many have also drawn parallels between 2019’s Bitcoin surge and that of 2017. Even though the latter pushed the asset to its current all-time high, there is a lot to take away from this one also.
Because the network has now evolved and has become much stronger, the playing ground is a lot safer and encouraging for new players to come in but also for old players to stay. One of the benefits of the evolution is a robust as rate. About a week ago, data from blockchain.com showed that the Bitcoin hashrate had climbed up to 65.19 trillion hashes per second (Th/s). Over the last 5 years, the network’s hash rate has even grown four times faster than the asset value.
Bitcoin Price Growth
The journey from Bitcoin’s price during the bear market to where it is now has been amazing. By the time the bear market had lasted almost a year, Bitcoin was valued just a little over $3000. In about the same length of time, it has multiplied more than four times, hitting $13,000. This is quite an impressive feat when you consider all the ruckus that happened from the Bitcoin cash hard fork.
$13,000 is More Than Fair
Tracy Alloway, a Bloomberg journalist, formed an index for the price of Bitcoin based on avocados. According to her and as silly as it might sound, the Bitcoin market shares a few similarities with the Mexican Hass avocados.
Whenever it happens, price surges are celebrated but also can be a source of concern to many people, especially if there's a risk of a pullback. However, based on Tracy's calculations, the $13,000 mark is more than fair. According to her:
“Bitcoin remains fairly valued according to my avocado based pricing model, even after rising past $11,000.”
Dollar Drops as Satoshi Rises
The smallest unit of a bitcoin is the satoshi and at the beginning of the year, just one dollar could get you 30,000 satoshis. Recently, however, this has significantly changed because according to a chart posted on Twitter a few days ago, $1 won't even get you 10,000 satoshis.
South Korea’s Kimchi Premium
Even though South Korea is one of the largest bitcoin markets, sometimes constituting as much as 10% of the entire bitcoin trades, people in the country on average, pay more for Bitcoin than other countries. A fine example of this was in December 2017 when prices in South Korea where more than 40% more than other places.
In 2018 there was reduced participation in the Bitcoin trades from the country and a few other parts of Asia. However, things are a lot better now and Asian Traders have come back in large numbers, pushing the price in South Korea considerably higher again due to the kimchi premium.
How Would the Market Fair From Here?
There have always been people who correctly predict Bitcoin’s trajectory but a lot of the time, it’s very difficult to be entirely certain. However, according to Filb Filb who is a popular analyst and trader, the coin will still shoot much higher but eventually drop below 10,000 dollars in the near future.
The trader said:
“This would mean that although bitcoin is in the final leg of this run, it could still top out at $16,000 before a correction to somewhere around $9500.”