In 2017, Bitcoin reached near $20K by mid-December. Starting from around $1,000 on that year, it was the highest level Bitcoin ever reached. But following the next 12 months, Bitcoin will have a correction, losing more than 80% in the process.
There were many factors then that may have caused the correction. For instance, you have a lack of regulatory clarity plus the hacking incidents. In the last month, Bitcoin has been showing signs of a comeback. Today, Bitcoin was able to go above $7,500 for the first time since August 2018.
Long Term Bull?
One question that everyone has in mind is if we have officially entered a bullish market? And also, is this a long-term bull market that we are currently seeing?
There are a number of reasons why Bitcoin is currently going up. One of the reasons why Bitcoin is headed up is FOMO or fear of missing out. It has been a factor, especially in the 2017 bull run. Aside from this, in January, there were reports wherein experts saw the bearish period as the time to accumulate Bitcoin.
An important observation is that there were unspent transaction outputs found in the Bitcoin network. It has increased since mid-2018. What it means is that there were fewer people that are selling their Bitcoin. Basically, many opted to HODL.
And also, let’s not forget about the involvement of a Bitcoin Whales. A mysterious Bitcoin wallet was responsible for the 20% rally during April. The whales transferred large sums of Bitcoin in just the last two months. And in the last 24 hours alone, hundreds of thousands of BTC were moved. Whales were reported to have moved 167,000 BTC in the last 2 hours alone. That is an equivalent of $122 million.
Now, will there be another pump in the coming days? Could it be possible that Whales are going to make a big move again?
Then, you have Bitcoin dominating the crypto market. It has peaked at $59.4 on Sunday which was the highest since December 2017. It means that many are now looking to obtain Bitcoin than altcoins. But of course, you also have to take into account that altcoins are showing signs of a short-term bull market. Cryptocurrencies such as EOS, XRP, have increased by around 6 to 9 percent as well in the last 24 hours.
Bullish Despite Controversy
There were a number of things that could’ve easily dropped the value of Bitcoin. However, it seemed that it didn’t affect Bitcoin too much. First, you have the controversy that Bitfinex is using the Tether US dollar funds in order to cover up for their losses.
Next, you also have the hacking incident at Binance. Hackers were able to steal 7,000 BTC worth $40 million.
Considering these developments, is this actually the time that many are waiting for? Could it be possible that Bitcoin is on its way to beat the all-time high at near $20K?
Now, you also have the imminent adoption of cryptocurrencies. Aside from bills that are being developed to clarify the crypto market, now, you have companies like Facebook and recently Starbucks that are headed towards blockchain technology.