Well, here’s a bit of good news for us all to enjoy. It looks like maybe bitcoin isn’t doomed to end on such a low note after all.
Bitcoin Is Showing Promise Once Again
Yes, the currency is nowhere near its peak price of $13,600 which occurred over the summer, but we can all take comfort in the fact that perhaps the number one cryptocurrency by market cap isn’t going to end 2019 below $7,000.
After several days of traversing the $6,000 range, it appears the currency is walking a path of recovery, having jumped to as high as $7,400 on Wednesday, December 18. At the time of writing, it seems bitcoin isn’t quite where it needs to be strength-wise and is still experiencing a few trips and falls here and there, for on the following day, the currency dropped by nearly $300 to hit the low $7,100 range again. This is basically where it was hanging prior to its slip into $6,000 territory.
The big question is, “What will happen next?” Will bitcoin continue to experience the “magic of Christmas” and spike even further, or is this perhaps as good as it’s going to get for 2019 and our hope lies in how 2020 decides to move?
With 2020 being an election year, anything can happen. The currency spiked to new levels back in 2016 following the election of President Donald Trump. At that time, bitcoin was reaching $1,000 – a price it hadn’t enjoyed in nearly three years.
Furthermore, 2020 will also give us the halving that’s slated to rock the industry in ways many of us aren’t even anticipating, as some analysts argue.
Investors like Ha Duong in Berlin believe the event is likely to stir some heartfelt waves in the industry. Speaking with Reuters, he comments:
For us, the event will be positive because it can cause activity in the market.
While it’s plausible to assume that the halving will be good, “activity in the market” is a very general thing to say. What does that mean, exactly? Will the markets go up or down? “Activity” is not a specific word and can be virtually used to describe anything.
And for some, that “activity” isn’t likely to amount to much. Jason Williams, for example, is the co-founder and a primary partner at Morgan Creek Digital. He doesn’t think the halving is going to contribute to any major change in the crypto space, explaining that the bitcoin space is mostly shaken up when – and only when – new traders give it a go.
Not Much Will Happen
New buyers must com in to move this market up, so other than a new headline, the halving is being dealt with now by those who are operationally affected by it. Those that don’t will be priced out of the mining business.