On Monday, November 27, Bitcoin has gone too far, touching another all-time high at $9,640. And it looks like it’s not the end.
Greed and Rush
Cryptocurrency has gained more than 870% during the year, and now the key question – whom or what can stop the process? Bitcoin’s sharp move higher only supports the speculative demand for the asset, despite the growing speculations on the nearing bubble burst.
The fear of missing out is driving the mass desire to buy cryptocurrency. Those who didn’t believe in Bitcoin at first sight are gradually changing their opinion. And those who saw their friends earning good money on the cryptorush want to jump aboard the leaving train and join the market en masse.
The constantly popping up news confirming the cryptocurrency’s status at well-recognized marketplaces is an additional driver of people’s interest.
For example, СМE Group, the largest North American derivatives marketplace, offering the widest range of futures and options products and uniting commodity exchanges of Chicago and New York, has recently announced plans to launch Bitcoin futures. It is practically the acknowledgement of crypto assets potential by behemoths of the market.
Besides, there are interesting data on crypto assets global expansion. Bitcoin is already an official means of payment in Japan. Moreover, the number of companies accepting cryptocurrency as payment has grown by 12% during the period from August to October!
The bubble will burst for sure. It’s just a question of time, but that may be a long time before the collapse. The mass hysteria has just begun.
By the end of the year, we will most probably arrive at $15,000. But, be careful. Cryptocurrencies have a very volatile nature and may lose up to 30 percent during a day. If you trade via a broker, there is a possibility that you will be pushed out of the market before Bitcoin resumes its appreciation and reaches $15,000. We’ve seen it on November, 12. And history may repeat itself.
There are two things that may drive the cryptocurrency slump. First, the news of a crypto assets ban in one of the widest markets, as we’ve seen with China. Second, the speculations of huge reductions of Bitcoin longs with significant outflow to altcoins. Be careful and follow the news constantly.
By Akke Svenson, Rahakott CEO