Bitcoin continues its rise. And just when everyone thought that reaching $7,500 was unreal, Bitcoin is now back in $8,000 range. This is Bitcoin’s highest since last July. In 2017, Bitcoin was able to sore all the way to near $20K level. By 2018, regulatory problems, hacking incidences, and the lack of adoption all contributed to the bearish market. Bitcoin had a massive correction of more than 80%.
And the thing with Bitcoin is that it isn’t exactly the first time that Bitcoin had a correction and was able to recover. Many dismissed the cryptocurrency as a bubble. However, it seems that it isn’t the case considering how Bitcoin is now getting back on its feet.
What is Happening in the Crypto Market?
What made Bitcoin go up once again? In fact, there were controversies over the past weeks. However, despite the controversies including Binance getting hacked and Bitfinex allegedly using Tether’s US dollar fund to cover up for their losses, Bitcoin still managed to continuously go up.
According to Dan Held who is the co-founder of Interchange which is a company that advises companies on how to manage crypto-related assets, “It’s bitcoin’s moment to shine when people momentarily give up on the government or the banking system”.
Is this really the case? In reality, the major indexes were reported to be doing good. If the economy was doing well, what could’ve sparked the movement in Bitcoin’s price? For James Putra who works for TradeStation Crypto, “When the market started to rise, it drew more people in”. He also mentioned that “Larger players started to take bites out of the marketplace; it’s a common and familiar approach”. So was it just FOMO?
There were reports of Bitcoin whales being involved in the recent jump in Bitcoin’s price. John Griffin who is a finance professor at the University of Texas mentioned that “Manipulation could very well be behind the recent market moves. To act like Bitcoin and cryptocurrency prices are purely driven by supply and demand of little traders…ignores the specific mechanics of this marketplace”.
And Griffin isn’t the only one who suggests that whales might have played a huge factor in Bitcoin’s movement. Tim Massad who is a former chairman of the US Commodity Futures Trading Commission thinks that “But you worry that manipulation could be contributing factor given the lack of regulation and transparency in this market compared to other markets”.
What’s Next?
Could it be a sign that Bitcoin is moving closer to its all-time high? There are those who believe that Bitcoin could potentially do this. In Bitcoin’s history, it has been able to beat the all-time high after a massive bear market.
For Vaibhav Kadikar, “The $10,000 mark remains firmly in sight over the coming months”. As for the possibility of reaching an all-time high, he mentioned that “And the possibility of surpassing the previous high in the coming half year still remains”.
Though there are still a lot of issues that need clarification in the niche, it seems that Bitcoin is currently bullish. The question of whether or not it gets to its all-time high is left to be seen. However, keep in mind that the last time we saw Bitcoin skyrocket to near $20K only took a short time.
