Rising by about 6.63%, the world’s top cryptocurrency is seeing serious gains in its price as it is standing around at the price of $ 9,180 at the time of writing. The asset has seemingly acquired a clear bullish trend and is now on its way to cross the possible $10,000 mark.
Talking to BlockPublisher, Eric Brown, founder and chief executive officer of Alliant Payments, stated regarding bitcoin’s price by the end of the year:
My Bitcoin price prediction for the end of the year is $23,000. Although we are still very much in the infancy of this type of currency, the technology behind it is rapidly growing, and so will the value of the currency.
Over the past week, strong support has been seen by bitcoin at the $7,500 mark and after crossing the resistances at $8,000 and $8,500, the asset is now eyeing to cross the $10k mark. But alongside bitcoin, there is another cryptocurrency that is attracting a lot of traction, Litecoin.
Often termed as the silver to bitcoin’s gold, Litecoin is currently the fourth biggest cryptocurrency of the world in terms of the market capitalization. This year alone, Litecoin has risen in its price by more than a staggering 300% and in the last month alone, with gains of around 43% observed. Litecoin might just have played its role in pumping bitcoin up as the senior market analyst at eToro, Mati Greenspan, took to Twitter stating:
If Litecoin is indeed the leader, let’s look out for a Bitcoin breakout this week.
The Litecoin pump is being observed in the hindsight of the upcoming halvening event that is expected to come in August this year. As a result of the halvening, miners have their mining rewards cut by half thus decreasing the supply of newly-minted coins in the market.
So before the supply cuts, investors are flocking in to buy the asset and thus are pumping the price of the asset up. But for bitcoin, a similar event is expected to come next year in May. The tide of buying as much as one can before the supply cuts short might have just begun.
Earlier, a venture capitalist also pointed out that the bitcoin market is moving towards a “supply-shock”. Talking to Bloomberg, Alyse Killeen, managing partner of StillMark Capital, stated:
“What I think might be happening is an anticipation of a coming supply shock in 2020…In 2020 we’ll have just half the daily supply of bitcoin that we do now. While we’re looking ahead to this supply shock and halvening event, we’re also seeing greater demand for bitcoin and new on-ramps for more familiar and conventional sources. There’s the anticipation that there will be a broader group of users and consumers who have an appetite for bitcoin.”
This means that the interest for bitcoin is now steadily growing among the general public and its a cycle when it comes to the effect of public adoption on bitcoin’s price. The more the demand, more is the price pump for bitcoin. This spike is also expected to attract more new investors in the community.
The bull-run of 2017 resulted in a lot of people gaining timely benefits. If a bull-run like that is expected again, new investors and people in the crypto community would surely want to step in. With each spike, the expectations for a bull-run get developed and more people come into this nascent space and thus a vicious cycle starts running.
For the future, a bullish aura is being established around the digital asset bitcoin. But in order to understand the behavior bitcoin’s price moving forward, one needs to look at the major factor controlling it, speculation. There is no physical backing of the asset and bitcoin’s price is dependent extremely on speculation, that is, people believing that the asset is worth something and will be worth something in the future.
With each positive development that is made in the crypto arena such as adoption in a particular industry or giants like Facebook adopting cryptos, a more positive aura is established around bitcoin and the price is usually observed spiking as the speculation gets stronger. Right now, bitcoin is riding on a very strong and positive speculative ride, it is being expected that its price will only rise from here on. But with all the uncertainty and volatility associated with the crypto space, nothing can be said for sure.