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Despite the recent turn of events, despite bitcoin once again falling into the $8,000 range, the currency is still 2019’s best performing asset according to a new report.
Bitcoin Is Still at the Top of Its Game
The currency shocked enthusiasts this April when it spiked to the $5,000 range. Many traders and investors thought that day would never come. After all, 2018 had been filled to the brim with humiliating losses that ultimately caused the coin to lose more than 70 percent of its overall value by the time November rolled around. After five months of trading at the mid $3,000-mark, bitcoin began to spike and ultimately rose 200 percent by the time summer came in.
Unfortunately, last week’s crypto bloodbath took a serious toll on bitcoin and all the remaining top 20 cryptocurrencies, with assets like bitcoin cash falling to $220 after trading for over $300 for some time. Other assets, like Ethereum and Litecoin, also experienced massive losses.
Still, however, it appears crypto isn’t doing all that bad. Bitcoin has more than doubled its price since the beginning of the year, outperforming tech stocks by a wide margin, which only spiked by around 31 percent since the start of 2019. Messari researchers, who authored the report, say that bitcoin could impress us all again and rally during the final three months of the year to top the $13,000 mark it struck last June.
Many analysts are weighing in and trying to offer reasons for why bitcoin remains so popular. Keld van Schreven, a director of the London-based crypto investment firm KR1, believes that at the end of the day, people are suffering from FOMO, or fear of missing out. Bitcoin has shown itself to be extremely volatile in the past, and while price swings down low have proven inevitable, the currency has also shown a capacity for reaching very high marks without warning.
Thus, despite the trouble it’s caused, many people want to be ready when the next uptick occurs and are buying bitcoin hoping to cash in. Schreven comments:
Bitcoin’s been around long enough now where people are more familiar with it. Yep, it swings wildly, but they might know other people who have bitcoin, and say to themselves, ‘Hey, they’ve done pretty well this year.’ It’s always down to fear of missing out.
Things Could Get Better
Bitcoin is by no means a “safe haven” just yet, but many believe it’s just getting started in terms of bullish behavior. Trump’s trade war with China, for example, is likely to push the BTC price further down the line, and its hash rate has gone up significantly since the beginning of 2019.
A poll conducted amongst Messari workers shows the median bitcoin price for the end of the year will be well over $13,000.