Bitcoin has suddenly become a beacon of strength in a sea of tumbling currencies.
After rising past the $10,000 mark at the beginning of the week, earlier this morning Bitcoin [BTC] broke through to $11,726 (US$8,121), almost a 3% rise.
Is this the end of crypto winter?
The wait looks to be paying off for bitcoin believers while leaving the naysayers in the dust — at least for the time being.
Given bitcoin’s previous poor returns, there is some confusion about what has triggered this bullish turnaround throughout April. The US$160 billion market has been largely calm in 2019 compared to the massive 76% slump bitcoin users experienced in 2018.
Those who are familiar with bitcoin know that sudden movements are nothing new, but even the worst news couldn’t seem to shake this week’s enthusiasm.
The largest crypto exchange Binance recently lost around $40 million in trade due to hackers, but bitcoin quickly rallied. This comes on the back of calls — from multiple sources — to ban cryptocurrency altogether in case it triggers a backlash against the fiat. (Hint: It won’t.)
The question is: how quickly should you start celebrating? The price is nowhere near its 2017 high, and this wouldn’t be the first time a large market buy has shaken the network.
Bitcoin adoption on the up
This could be a critical moment for bitcoin, but as previously pointed out, the digital currency has a way to go before it garners more trust:
‘The Bitcoin market and crypto market in general continues to be small relative to the rest of the markets — and emotional. It’s still very much subject to waves of enthusiasm.’
It’s more than likely a case of existing bitcoin investors pushing the boat out a little further.
Until now, big business has not exactly been adept at incorporating crypto into the retail sector, with many businesses scrapping their original plans to use it. Given its reputation for being extremely volatile, it’s not hard to see why it’s taken so long for bitcoin to enter the mainstream.
But there have been a number of positive announcements to come out from the latest round of Bitcoin Week NYC, including new research which shows ‘“rapid” bitcoin and crypto adoption.
This is likely the reason that a select group of US business groups have tentatively bought into bitcoin and crypto, even with concerns about security and privacy remaining.
‘Despite the volatile crypto markets, we’re seeing governments and businesses adopting blockchain technology at a rapid pace.’
Springtime for crypto
Much of the drive for a potential bull run over the last week has come from the bitcoin community — which doesn’t change the fact that everyday investors have been slow to catch on.
For all the uncertainty, we don’t have to remain in the dark. To get an inside look at what you could potentially do with cryptocurrency, you can read our free report on the five reasons we believe bitcoin can add value to your portfolio.
For Money Morning