Bitcoin is continuing its bullish price run and is now trading above the $7,500 mark.
Bitcoin Is Still on a Roll
The currency has been gaining steam a little at a time – usually $100 here, followed by $100 there. Bitcoin initially ended last week at roughly $7,300 but has gained $200 from there.
This goes back to the argument we reiterated in yesterday’s piece. The way for BTC to get ahead is through a slow and steady pattern; not all at once. The latter method was already utilized and witnessed in 2017. During that time, bitcoin rose from just over $1,000 to nearly $20,000 by the time December rolled around. In less than one year, bitcoin had grown by nearly $19,000.
As it turns out, bitcoin may have been the subject of hardcore manipulation during this period. The currency was allegedly being purchased with Tether, a controversial stable currency. According to a report issued by University of Texas finance professor John Griffin, a crypto whale was using Tether to purchase bitcoin whenever it fell by even the smallest margin. Doing so would tie bitcoin to fiat, which is what allegedly gives Tether its support.
While this seemed to be a good idea at the time, the situation soon backfired, as 2018 is widely considered to be one of the worst years for bitcoin. The currency lost more than 70 percent of its value, and all its gains since March of the previous year vanished by the time Thanksgiving rolled in. After reaching its all-time high less than a year before, bitcoin – the world’s largest and most powerful cryptocurrency by market cap – was now trading at a mere $3,500.
2019, while better for the industry’s leading asset, offered more mixed results than many enthusiasts would have liked. The year started out as a “continuation” of sorts for 2018. The currency spent the first three months – January through March – trapped in the $3,000 range. Many believed that bitcoin’s glory days had come to an end and didn’t see the currency moving up any further.
A Better Year for Crypto?
However, bitcoin surprised everyone in April of that year when it spiked beyond the $5,000 mark for the first time in several months. From there, more price jumps came about until the currency peaked in mid-July, striking $13,600. From there, drops became a regular occurrence until the currency lost nearly half of its previous summer value. By the end of 2019, bitcoin had moved to just over $7,000.
2020 seems to be off to a stronger start. While things aren’t moving very quickly, this could be better for bitcoin in the long run. A slower speed is easier to maintain and likely to attract more knowledgeable investors – not just those looking to get in on a “get rich quick” train, which will allow the currency to build a stronger base.