At press time, bitcoin is trading for a little over $10,400. This is slightly less than where it stood yesterday (about $300), but many analysts still see bitcoin as entering another bull phase.
Is Another Bitcoin Price Rally Coming?
The news behind the recent price bump has to do with the fact that the VanEck Solid X Bitcoin Trust, after many delays, is ready to start handing out shares to institutional traders this coming week. This sent the currency skyrocketing to well above $10,000 after a solid week in the doldrums in which the currency fell to the mid-$9,000 range. At its lowest, bitcoin was trading for less than $9,500, which means that the coin surged by roughly $1,300 in just a few days.
Overall, the currency has increased by about 11 percent, while other competing altcoins, like Litecoin and Ethereum have increased by about five percent. Bloomberg Intelligence analyst Mike McGlone mentions:
All the signs are there that institutions are interested, and this, to me, is part of that trend. It looks like it could continue to go up and it’s got some good reasons.
Not all analysts share this sentiment, however. Ed Moya, chief market strategist at Oanda Corp. believes that the rally is only a temporary event, explaining:
Security vulnerabilities and stricter regulatory hurdles are likely to keep this rally short-lived. We could see this rebound be temporary.
One source suggests that if bitcoin is to reach $20,000 again, it will likely be thanks to China. The United States and China have been engaged in a hardcore trade war for the past several months, and the trend is that whenever something negative happens, bitcoin shoots up. We don’t always know what it is or what to expect, but the currency does do well whenever economic circumstances look bleak.
If the trade war continues, BTC will continue to spike, and the source suggests that this will be the case. No side, neither China nor the U.S., has shown restraint in how they handle the situation, and neither appears willing to buckle. After all, there’s a lot to lose if they do. Trade wars lead to serious financial losses, and there are growing fears of a recession exploding at every corner.
It’s Possible the Currency Could Spike Quickly
Given the situation, the trade war isn’t likely to let up, and we may see bitcoin spike to $20,000 again by the end of the year like it did in 2017.
It’s easy to think that with only four months left in 2019, bitcoin doesn’t have enough time to shoot up that high. However, this was the case two years ago; bitcoin was trading in the $5,000 range in September and had shot up another $15,000 by the time December rolled around, so perhaps the idea isn’t as strange as some might think.