At the time of this writing, everybody’s favorite cryptocurrency is inching back up again. Could the market finally be turning around?
Over the past several days, Bitcoin has repeatedly incurred drops which ultimately brought it down to the $3,600 range earlier this week. Questions were running through Bitcoin enthusiasts’ minds about the currency’s status and about whether it was officially dead.
Now, however, the currency has managed to turn itself around somewhat. At the time of writing, Bitcoin is trading for just shy of $4,400. While it’s nothing to break out the champagne over (after all, Bitcoin was worth nearly $20,000 at one point), it’s a welcome step back toward the good old days of Bitcoin price spikes, and many are waving goodbye to the prospects of $3,000.
Bitcoin’s Got a Few Friends
Bitcoin is not alone in its present upward trajectory. Other digital assets, like Ripple’s XRP for example, have risen approximately 12 percent since the dreadful Thanksgiving bloodbath that brought the crypto market cap lower than McDonald’s. Ethereum is also up by about 14 percent.
In total, the cryptocurrency space has seen approximately $20 billion added to its total market cap over the last 24 hours.
The Leaders Weigh In
Several analysts attribute the sudden rise to different factors. Andy Bromberg – co-founder and president of CoinList – believes the recovery is likely the result of “investors digging back in after the craziness of last week.”
Today’s rise is mostly a reaction to the precipitous drops last week and people thinking that may have been an overreaction.
Brian Kelly – CEO of BKCM – believes bitcoin may have spiked in part because of the “hash wars” sparked by the bitcoin cash hard fork that occurred two weeks ago. The wars are suddenly coming to an end now that bitcoin cash has branched out into two separate chains.
You’re seeing the bitcoin cash saga play itself out. People were funding a lot of that by selling bitcoin, so one element of sellers has left the market… People are starting to understand that this is a legitimate asset class.
Some People Are Seriously Bullish
In the meantime, bullish sentiment remains from leading industry figures such as Fundstrat’s Tom Lee and venture capitalist Tim Draper. The latter is confident that bitcoin will potentially spike to $250,000 within the next four years, while the former – despite the consistent price drops as of late – is maintaining his position that bitcoin will end the year at roughly $15,000.
With only a month left to go in 2018, we certainly hope he’s right.
Do you believe Bitcoin is making a comeback or is this rise a fluke? Let us know in the comments below.
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