Showing a mammoth 8.27% increase in the past 24 hours, the world’s most sought after cryptocurrency, bitcoin, is standing at around $7,450 at the time of writing, a bit shy of the $7,500 level. Just at the start of April this year, bitcoin was traded at lower $4,000s and now, almost a month and a half later, it has increased by more than 50% of its April’s price. The following graph shows the staggering gains that bitcoin has made since April this year.
The price spike has made bitcoin “red hot” again as investors are now flocking to bitcoin, looking at the possible benefits that it has to offer in terms of its price volatility.
The price spike can be directly linked to the positive sentiment that is being developed around the asset. The hype around the Blockchain Week, to be held in New York City, is largely positive and the FOMO (fear of missing out) around the asset after its April’s spike is invoking people to join this space as soon as possible so that they can also gain timely benefits before its too late.
The bitcoin bull-run of 2017 saw bitcoin rise from a few thousand to almost $20,000 in a matter of few months which resulted in a lot of “bitcoin millionaires”. If a run like that happens again, no one would want to miss out. With people like John McAfee and Twitter CEO Jack Dorsey showing a positive attitude towards bitcoin despite all its shortcomings, the trust that the crypto investor and trading community has shown in bitcoin is not easy to shake.
Amid this price spike, one of the most exciting things to notice is the reactions of crypto enthusiasts on Twitter, that have always taunted and poked the centuries-old banking system. The proponents of the crypto space use this platform to highlight the prospects offered by the blockchain technology-based cryptocurrency world. As the price has spiked, here is what people on the ‘crypto Twitter’ are saying:
BITCOIN IS UP OVER 75% IN 2019
— Pomp ? (@APompliano) May 11, 2019
The $6400 area was the most traded for bitcoin in 2018. There was heavy daily, weekly, monthly supply there – and price just nuked it in one shot. This is one of the most powerfully bullish moves that bitcoin has ever made. pic.twitter.com/ldTtoOZkYE
— The Wolf Of All Streets (@scottmelker) May 11, 2019
Well-renowned crypto perma-bull and cybersecurity expert John McAfee, who has already made numerous remarks regarding bitcoin hitting the million dollar mark in the near future, also jumped into action on the recent price spike. He said in a recent tweet:
And now for a commercial break. Bitcoin is well on its way to $7,000. If this growth rate continued (it will not), Bitcoin would be over $4 million by the end of 2020. The wallet is vacant – a test wallet which never contains more the $0.25. So stop salivating.
This price spike on the heels of a notorious hack that took place on one of crypto’s biggest global exchanges, Binance, just recently. Despite around 7,000 BTCs being stolen from the exchange, the price of bitcoin did not see any downward fluctuation at all. Instead, it has gone on to continue its bull-run of 2019 after staying inactive for months. This signifies that the trust around the asset in the investor and the trading community is still there. The bulls of this digital asset and the technology lying underneath, blockchain, are holding onto their belief in this space.
But what should we expect the asset’s next position to be? Here are some of the opinions from the crypto Twitter itself:
By Monday, $BTC should be back under $5900. Running on fumes here. Could be wrong, but just what I’m expecting. Not shorting BTC atm.
— Credible Crypto (@CredibleCrypto) May 10, 2019
— Fibonacci (@SatoshiTrends_) May 11, 2019
The hype around the asset has certainly lit up everyone with people eyeing the next move in bitcoin’s price. But in the backdrop of all this lies uncertainty. One can never be sure how the asset is going to behave in at any given time. It is mere speculation that drives people to believe in bitcoin, buy it and push its price up. There is no physical asset that backs it. So amid this whirlpool of crypto bulls, one needs to be wary of the uncertainty associated with cryptos. Predictions regarding the price are still floating around but many of them have also proven to be false in the past. Nobody knows for sure, but if people like John McAfee are to be believed, bitcoin might just be carving out its way to the million dollars mark in the near future.
Last but not the least is the matter of adoption. People in the crypto space have either been involved with it because it sometimes provides big returns on investment despite all the risks associated with it, or they are here because they believe in the “decentralized” technology lying underneath, the blockchain. Price spikes in the past, especially the bull-run of 2017, pulled a lot of people into this space by showing them the prospect of getting heavy gains in a matter of days. With bitcoin’s relatively bearish-run of 2018, people have stepped back from it owing to the possibility of losses. But that seems to be changing now as developments are being made at the legislative end and a positive sentiment around the crypto is being established. The latest price spike is likely to attract more eager investors to bitcoin, increasing the asset’s adoption worldwide and shedding more light onto it.
It looks like the bull-run has set in. But every hour in the crypto world is an uncertain one. Bitcoin has a history of going through the roof and falling flat on the ground in a matter of days. It will be interesting to see where this new bull-run leads to.