Despite a recent Bitcoin price surge, most of the momentum has seemingly cooled off. Most miners expect things to improve gradually. The rise to over $8,000 for the first time since May of 2018 and the increasing hashrate are promising long-term signs.
Keeping the Bitcoin Price Faith
Short-term changes affecting the Bitcoin price only tell a part of the story. Over the past few days, Bitcoin’s recent bull run has seemingly run out of steam, yet remains firmly above $7,700. Initial market resistance is to be expected after a near two-week bull run. The world’s leading cryptocurrency’s price hasn’t looked this promising since May of 2018. From a long-term perspective, this momentum can lead to an eventual new all-time high.
Various developments in the cryptocurrency world pave the way for future gains. A movement by institutional investors into the market is underway, and more mainstream financial firms are becoming actively involved in the cryptocurrency and blockchain spheres. Combined with the growing demand for exposure to Bitcoin and altcoins, the stars are aligning. On the flip side, the SEC rejected yet another Bitcoin ETF application. It is this decision that’s temporarily spooking speculators and traders, although the price has rebounded since then.
One factor holding mass Bitcoin adoption is the notorious price volatility. Unlike stocks or precious metals, Bitcoin’s value can fluctuate quite a bit. According to Forbes, Bitcoin is six times more volatile compared to large-cap stocks and gold. That is part of what attracts so many speculators as well.
Key Factors to Take Note Of
A lot of things happen in the Bitcoin world. For a project which has yet to celebrate its tenth birthday, Bitcoin has come a very long way. It did not have any real significant value until 2011 and early 2012. Ever since then, it has been one of the world’s best-performing assets many times over. With regulatory efforts now seeking to bring more legitimacy to this industry, the coming years will only become even more interesting.
Several key factors contribute to a healthy Bitcoin ecosystem. The number of miners and their combined hashrate paints a very bullish outlook. Despite price setbacks, the Bitcoin hashrate continues to climb on a very regular basis. Even the major market dip from $19,500 to $5,500 has not caused any real changes in this regard. Instead, it has an opposite effect, further confirming Bitcoin is still bullish long-term.
It seems the Bitcoin mining industry cannot be held down. Despite flooding in Sichuan a month ago, the network recovered the missing hashpower fairly quickly. Additionally, new reports regarding the electricity consumption of Bitcoin mining show this industry is far healthier than assumed. The total energy consumption is nearly half of what was originally thought. As such, Bitcoin’s environmental impact is far less problematic.
What do you think the long-term Bitcoin price outlook is? Let us know in the comments below.
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