Looks like the bitcoin is trying to get back to its glory days. On a single day in April, the cryptocurrency increased by nearly 20 percent to US$5,000. Since then, the price hasn’t stopped rising and last Wednesday (8) the currency hit the $6,000 mark – it’s the maximum bitcoin value in six months.
Bitcoin has expanded its dominance in the cryptoactive market, which reaches 58% of the total marketshare, its highest level since December 2017, when it hit its historic peak of $ 20,000
Last year had been brutal for those who invested in cryptomeda. The price fell from its historical record of US$19,500 in December 2017 to US$3,100 in 2018. In the first months of this year, the price of the currency was between US$3,000 and US$4,000. Until April.
It is difficult to explain the bitcoin movement. In recent weeks, the main news related to cryptocurrency has been negative: a possible ban by the Chinese government on mining virtual currencies, concerns that a major exchange of cryptocurrencies could be insolvent and, more recently, the theft of $40 million in bitcoins from Binance, a global exchange for trading cryptocurrencies. We have to wait to see how this movement can affect others Blockchain Networks.
Since 2018, bitcoin prices range from $3,000 to $4,000.
Headlines like these are not uncommon in the bitcoin world – the community has been dealing with hackers and hostile governments for years, but it doesn’t seem like the kind of news that encourages the purchase of bitcoins.
At the same time, recent weeks have shown a growing interest in cryptocurrencies by traditional companies. US investment firm Fidelity, for example, is preparing to offer cryptocurrency trading services to institutional clients, which could allow more large investors to buy bitcoins.
However, the most significant news came from Facebook: the social network is thinking of launching its own cryptocurrency. The introduction of facebucks alone would not directly increase the value of the bitcoin, but cryptocurrencies often value (or devalue) together and a Facebook initiative would broaden interest in other cryptocurrencies.
Of course, the recent increase in bitcoin prices can also be completely random. Now, the biggest question is whether bitcoin will be able to maintain the good results.
In its 10-year history, cryptocurrency has experienced at least three major cycles. In 2011, it peaked at $30, before falling to about $2 by the end of that year. So it rose above $1,000 at the end of 2013, before falling to $200 in 2015. This was followed by an explosion that raised the price to nearly $20,000 by the end of 2017 – and the fall the following year to just $3,000.
Bitcoin investors expect history to repeat itself once again – and the recent rise in bitcoin to start a fourth boom that will break the $20,000 barrier and take the currency to new heights.
But in previous years, the bitcoin has been driven by waves of new investors who have discovered cryptocurrency for the first time. By 2019, most investors are familiar with the virtual currency and it is unclear whether there is room for history to repeat itself for the fourth time.
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