Bitcoin is currently trading for just under $11,900. This is about $1,500 higher than the currency’s low point last week when it was selling for approximately $10,400.
Bitcoin Strikes New Price Chord
For the most part, bitcoin has exhibited new strength that many enthusiasts aren’t used to seeing. For one thing, the currency clearly underwent a short correction phase. The asset dropped, but it didn’t drop for long, and it didn’t need that much time or space to start building its price back up. There have been a few small slumps here and there, but bitcoin has largely been on the rise since April when it first reached $5,000 – a price many traders thought was out of reach given bitcoin’s previous 15-month run in the gutter.
But analysts are also warning enthusiasts not to get too comfortable. New research suggests that holidays tend to boost crypto conversations and interest. People bring it up at the dinner table, and as a result, they become intrigued enough to start trading or adding to their portfolios. In all, this is good news. It helps to legitimize the space further and bolsters users’ education and knowledge of the crypto industry.
At the same time, research also shows that these little tidbits don’t tend to give cryptocurrencies their due. Digital assets may experience price hikes during these holiday periods, but the hikes don’t last long. This time around, the holiday in question is the U.S. Independence Day taking place on July 4, and while bitcoin may be doing well at press time, analysts are worried that things could fall back a bit in the coming days once the holiday has ceased.
In a blog post, researchers at SFOX explain:
Part of the narrative surrounding [the 2017] unprecedented bull run was that many people were hearing about bitcoin for the first time. Over Thanksgiving dinner, the story goes, Luddites in the family would ask the more tech-savvy among them about this ‘bitcoin’ they’d seen in mainstream news – and how could they purchase some ‘bitcoin coins’ for themselves?
Can Crypto Improve without Holiday Help?
They continue to say:
Holidays within the bounds of pronounced bitcoin bull runs may correlate with temporary upswings in price, potentially due to FOMO [fear of missing out]. As the current bull run continues and major holidays take place, traders may do well to consider how much of market movements is from changed fundamentals and how much is from mass psychology. While improved fundamentals pave the way for sustained growth, the whims of psychology, historically, have proven to be relatively short-lived.
What would be fantastic is if bitcoin proves to the world just how strong and stable it’s become and manages to either retain its current place after July 4 or grow even further in price.