At the time of writing, bitcoin – the number one cryptocurrency by market cap – is trading above $7,400, which is the highest it’s been in the new year and the highest it’s been in a while.
Things Are Both Shaky and Stable for Bitcoin
To say things have gotten off to a rocky start for bitcoin in 2020 would be a bit of an understatement. While the currency did begin above $7,000, enthusiasts and traders everywhere got a bit of a scare when two days later, the currency fell into the $6,000 range unexpectedly, shedding approximately $500 off its price at the time.
Many wondered if the year of the upcoming presidential election and the long-awaited halving (currently set to occur in mid-May) would bring another 12 months of dismal downfalls for the world’s number one coin. However, things ultimately picked up through some very harsh circumstances.
Following a drone strike in Iran that killed one of the nation’s top generals, the price of bitcoin (and several other forms of cryptocurrency) began spiking like nobody’s business, shooting up by more than $400 in a matter of minutes. However, this came with something of a catch: the prospects of another global war. Many crypto enthusiasts were happy to see bitcoin go up, but they couldn’t help wondering if the implicated costs would be worth it.
Now, it appears the currency has risen by another $100 since yesterday, and to be fair, the sudden spike doesn’t seem to be a fluke. The currency is maintaining its present level of momentum and growing in small spurts, which is probably going to be better for bitcoin in the long run.
As we all remember, 2017 was ultimately considered the “year” of bitcoin in that the currency reached its all-time high of nearly $20,000 during December. However, the crash that followed in 2018 removed all of bitcoin’s previous gains and brought it down into the mid-$3,000 range by Thanksgiving.
What Will the Remaining Months of 2020 Hold?
While there are reports suggesting that bitcoin’s meteoric rise had something to do with manipulation through Tether, it can be said that such a fast rise is likely what led to the dismal outcome of the following year rather than the alleged manipulation itself. Something that spikes that quickly probably can’t keep up such levels of speed, and the smallest thing could potentially put a dent in its behavior.
Granted bitcoin continues to rise in the coming weeks but only steady and slowly (as it’s been doing), we’re likely to witness bitcoin stay in bullish territory longer. Granted it can take its time and reach a pinnacle without being pushed too far too quickly, 2020 could indeed become the big price year that so many analysts and enthusiasts want it to be.