Bitcoin is continuing to soar like crazy, and now boasts a market cap exceeding $100 million for the first time since 2019 began.
Bitcoin Is Heading for the Top
Recently, Live Bitcoin News reported on a new document submitted by Delphi Digital that suggested bitcoin’s price had officially bottomed out last December and wasn’t likely to fall any further. The report claims:
We continue to believe the bottom is in. The one year+ holder rate during the potential December bottom is within one percent of the one year+ holder rate during the previous cycle’s bottom in January of 2015. Minimal selling coming from long-term holders throughout the consolidation period over the past few months. In fact, we’ve begun to see a very slight uptick among long-term holder, which is consistent with the trend after the previous cycle bottomed.
Bitcoin is not alone in its present ascension, which means that it’s not just bitcoin experiencing solid bull runs as of late. The bullish activity seen in bitcoin is hitting the entire crypto space, with bitcoin cash, Ethereum, EOS and Litecoin experiencing solid gains of anywhere between two and seven percent over the past week.
What’s particularly interesting regarding bitcoin, however, is that on some exchanges, such as Bitfinex, the currency has experienced upticks of approximately $300 or more, which means that at press time, it’s trading for over $6,000 on those exchanges. This virtually erases all the losses recorded in the latter half of 2018.
The reason for this could be because many people are leaving Bitfinex thanks to the ongoing scandal it allegedly has going with the stable currency Tether. Live Bitcoin News has also reported on this in the past. Bloomberg Intelligence analyst Mike McGlone states:
What the actual price is and what’s being used to translate to bitcoin is part of the issue. People on Bitfinex are getting out of tether, off the exchange and what’s the first thing you’re going to buy if you don’t want too much broad crypto exposure? Bitcoin.
Among the companies currently taking a stronger stance for bitcoin is Grayscale Investments, which is advising its clients to drop their gold holdings and purchase bitcoin instead. The firm argues that:
Bitcoin will become the store-of-value for our digital age.
Is Bitcoin Really That Much Better Than Gold?
While it may seem plausible at first glance, getting rid of gold altogether may not be the best choice, as recent reports suggest that gold may be worth more than $1,400 per ounce by the end of the year.
This could be in part to further sanctions on international regions, instilled by the Trump administration, so it may be a little premature to suggest that bitcoin is the future of all finance and that gold is worthless. Companies like Grayscale should be advising their clients to look at the big picture and decide from there.