Bitcoin’s rise to fame in 2017 occurred thanks to a massive surge that doubled the cryptocurrency’s value in just under three weeks. Since then, it has suffered a downturn in the market. However, the past few weeks have seen a rapid uptick in the price of Bitcoin, leading many to wonder if this is a sign of the crypto’s future.
Since June 19, Bitcoin’s price has jumped over 40 percent to almost $14,000, a high not seen in recent months (and still off of the all-time-high in 2017 when the crypto hit $19,000). Despite the quick profit for those holding the coin, such a sharp increase leads to an uncertain future. Some analysts predict that Bitcoin can continue surging upwards of $20,000 while others see a downturn in the coming days. But what does the surge mean for the global cryptocurrency market as a whole?
Brave New World
Part of Bitcoin’s wild 2017 run was the sheer amount of media attention it received. This led to individuals and retailers buying up the coin on the fear of missing out (good ‘ol #fomo). Data from Google Trends suggests that interest in the term “Bitcoin” was significantly higher in 2017. Considering its recent surge is just beginning, this could signal more room for growth as consumers’ FOMO increases.
While investors shouldn’t forget that practically all gains from the 2017 run were wiped out shortly thereafter, it appears this recent surge has more support. From Facebook capturing the public’s attention with their announcement of their own currency, Libra, to a greater awareness of cryptocurrency as a whole, Bitcoin isn’t just a hipster investment anymore.
Even major financial institutions like Fidelity have adopted the coin. Meanwhile, as more and more influential tech companies back the currency, the public’s perception will likely only increase.
Fork in the Road
Bitcoin’s somewhat unpredictable nature is part of what makes it unique. Even so, this feature makes it almost impossible for analysts to reliably map out the coin’s future. It could skyrocket another $10,000 in the coming weeks or it could come crashing back to Earth. Though, from a sentiment standpoint, it appears many believe the former.
One important event to keep an eye on is the upcoming “halvening” in May of 2020. This will decrease the amount of Bitcoin miners are able to acquire, leading to a decrease in supply. Each of the crypto’s two previous halvenings has resulted in record-breaking price surges.
Even with this event on the horizon, traditional investors are betting that Bitcoin’s price will fall, according to a Wall Street Journal report.
Ultimately, consumers wanting to invest in cryptocurrency will have to side with future-minded enthusiasts who believe in Bitcoin’s future or traditional investors who look skeptically at it. Either way, the price movements of Bitcoin in the coming days and weeks are something to keep an eye on.