In BriefBitcoin reached a major milestone this past Saturday by crossing the $5,000 threshold. However, prices once again dipped after the weekend surge.
Editor’s note: This piece was written prior to the China ICO announcement and the subsequent correction.
The Bitcoin Bull
Yet again, Bitcoin has managed to beat the expectations of many, regardless of how little or much analysts have expected the cryptocurrency to gain. On Saturday, Bitcoin prices crossed the $5,000 threshold, signaling a sell-off by some large scale traders. This is expected when assets reach a high point. Many investors set sell orders when these high points are reached. Often, they expect the prices to dip and savvy investors can either pocket the profits or reinvest at the dip price point if they expect another surge.
That is exactly what some of the most bullish investors are predicting. Cryptocurrency can be a volatile market, so no prediction can be considered a sure thing. However, since the beginning of the year, it seems that the more optimistic estimations have proved to be victorious.
As of writing this piece, the price of Bitcoin has dropped a bit to $4,575.04, an even further dip than the price point at which value leveled after yesterday’s impressive rally. Still, there is plenty of room for that optimism to continue. Should a less than expected number of investors sell their coins, it will signal an increased level of confidence in the currency and prices will once again continue to surge.
The word “bubble” gets thrown around a lot in crypto circles. Yet, even if Bitcoin is perceived to be in one, these bubbles tend to prove themselves resilient and can last for a long time. Many investors are looking to Bitcoin as a safe haven in these increasingly uncertain times and are taking money out of gold to invest in crypto. Once again, we cannot know how the market will fare in the near future, let alone in the long run. But, at least for now, we will continue to ride this rollercoaster for its steep climbs and short falls.
Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.