In the past ten years, the market capitalization of Bitcoin [BTC] has risen from about $70 billion in April to $200 billion in just about three months. The rise has been mostly attributed to increasing institutional interest and Facebook’s cryptocurrency announcement, which seems to have validated the cryptocurrency markets, especially Bitcoin.
Furthermore, Bitcoin is the only cryptocurrency in the market that has become popular with institutions in financial services. The numerous altcoins are taking huge losses at the moment while it has enjoyed positive momentum. Moreover, the volatility in Bitcoin is still very high, which was witnessed prominently is the last few days. On Bitcoin’s ‘thin volatility,’ he noted,
“Volatility is by design as far as Bitcoin is concerned. 17 million Bitcoin have been mined until now, of those I would estimate that only about 30% are being activated and up for grabs.”
Bitcoin [BTC] rose from $11,000 to $13,800 and then back to 11,000 in less than 48 hours. The yearly rise in Bitcoin now is being described as a part of another cycle in Bitcoin. This is the fourth parabolic phase that Bitcoin has witnessed in the last ten years.
“I hope it is like 2017, 2017 was a fantastic year for Bitcoin so was 2013 and 2011. Bitcoin goes through these types of cycles of massive surges and massive pullbacks Massive pullbacks as well. “
Mati also noted the growth of the network since the start of 2019, where Bitcoin is witnessing 4-4.5 transactions per second. This was previously recorded for a short period during the 2017 frenzy. The Exchange volume and Bitcoin futures trading volume has also increased considerably.
Hence, for traders, cautioned must be taken at the moment because Bitcoin is facing a lot of heat. Thomas Lee, Partner, and Co-Founder of fundstrat, talked also talked about the volatility. He tweeted,
“reminder, Bitcoin is a hypervolatile asset. This is great for volatility and other dedicated traders. For most, taking a long-term view is more appropriate”
Mati also noted that we’ve entered the summer taking a lot of heat in the market with us. He said, “It’s very hot right now.” Therefore, upside towards new ATH, consolidation, or an even a deeper pullback; anything is possible.
Where do you think the market is headed next? What is your trading strategy? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com