World’s leading cryptocurrency in terms of market capitalization and popularity, bitcoin, is currently standing around an impressive price mark of $9,925 at the time of writing while showing a 5.93% increase in the past 24 hours alone.
Over the past months, the digital asset has made significant strides in terms of its price rising from the lower $4,000s at the start of April to the current $9k+ mark. Is the asset going for another bull-run as seen back in 2017? Here’s what the crypto community is saying about it:
— Bleeding Crypto (@Bleeding_Crypto) June 20, 2019
If bitcoin breaks 10k, you can bet it’s going to break 15k…
— Tyler Winklevoss (@tylerwinklevoss) June 19, 2019
$BTC will smash ATH this year
— CRYPTO BITLORD (@Crypto_Bitlord) June 20, 2019
#Bitcoin is still “down” to a lot of people who don’t own any crypto
It’s still down from $20,000
It’s still down from $10,000
There’ll be a moment where a psychological switch goes off in their minds where $BTC will finally be “up”
This is when things will really get crazy
— Rekt Capital (@rektcapital) June 19, 2019
From the thoughts that are being thrown around in the crypto space, it can clearly be inferred that people are now hoping for a strong bitcoin bull-run, one that can mirror bitcoin’s performance of 2017 as it almost touched the $20,000 mark, or go even further. But in order to understand whether the market is going to see another bitcoin bull-run, there is a need to understand the factors that control bitcoin’s price.
The biggest factor that controls bitcoin’s price in the market is speculation. There is no physical backing of bitcoin so its price is not stable. One day the market is seen shooting up with significant gains being made and the very next day, it is down on its knees.
Speculation means people believing that the asset is worth something and will be worth something in the future. This speculation is the reason why an aura of FOMO (fear of missing out) develops around bitcoin which attracts even more investors in this nascent space, and drives the price further up.
When bitcoin’s price starts rising up, a lot of attention comes from the investor community as everyone wants to invest in the asset timely to get maximum benefits. Although speculation plays a major role in this regard, media hype also has a part.
With a positive media hype built around the asset, investor interest increases thus increasing the price of the asset on basic supply-and-demand principle. Right now, the overall hype around the digital asset is looking largely positive. A bull-run from here would not come off as shocking. There are people who believe that bitcoin deserves a price tag that should be much higher than its current standing.
As stated by the renowned cybersecurity expert, John McAfee:
I don’t care if its a penny today, it’s going to be 2 million dollars very soon…What’s happening in the market has nothing to do with the reality of its value.
In the current scenario, the launch of Facebook’s cryptocurrency has brought a significant amount of attention to the crypto world. More and more people are now realizing the existence of cryptos. Although Libra is not a pure cryptocurrency being a stablecoin, it surely has exposed the nascent and “untouched” world of cryptos to a huge audience across the globe.
This is expected to draw in new investors in the crypto community thus increasing the adoption of this space. With increased adoption, bitcoin is expected to get even more market share, hence becoming more valuable over time.
So going with the expectation, if bitcoin is able to go on a bull run, it is also expected that altcoins will get a boost as well. Bitcoin is the major cryptocurrency in this space and has the highest market cap among other cryptos. Bitcoin usually drives other cryptos as well, both up and down with itself. A bull-run for bitcoin would signal an overall crypto market boost.
Bitcoin is surely making its strides on both technological and legislative fronts. A lot of institutional attention is being grabbed by the digital asset with companies like Facebook stepping into the blockchain space. Even with things seemingly all set for a bull-run, anything can happen. With no physical backing, it is hard to predict the behavior of this asset with full accuracy. Time to hold on to the seats, a norm in this space.
$BTC possible scenario
Regardless of how it moves, I think Bitcoin pushes higher pic.twitter.com/eSxeEdOUCd
— Josh Rager June 20, 2019