Bitcoin last traded in the $8,700-$8,800 range over a year ago, in the second week of May 2018. The digital currency remained volatile over the subsequent months, plummeting and rallying aggressively. Crypto proponents are taking encouragement from its current stellar run.
Crypto markets have witnessed strong positive momentum today as bitcoin (BTC) soared to its highest price point in over a year. Since the start of the year the value of the cryptocurrency has risen by 130%.
On 9 May Bitcoin crossed the $6,000-mark, and a few days later, on 12 May, it rose above $7,000. By 14 May bitcoin was trading at close to $8,200, and today it peaked at $8,937, according to CoinDesk.
Experts have identified and suggested a number of reasons for the cryptocurrency’s volatility and the rally it is currently enjoying, writes Hacked.
- Since the beginning of 2019, investors have been sitting on their bitcoins for extended periods, buying more than they have sold. And since the price of any cryptocurrency hinges on demand, Bitcoin began to rally.
- Cryptocurrency buyers recognised the dominance of Bitcoin and began to sell their Altcoins (all other cryptocurrencies) and switched them out for Bitcoins.
- The spiralling trade war between the United States and China also impacted the cryptomarket. On 10 May the US slapped 10% to 25% tariffs on almost all goods from China. A shadow market upsurge is highly likely against this backdrop: smugglers may try to duck tariffs and resort to transactions in cryptocurrencies, according to experts.
- Cryptocurrencies, incidentally, are highly popular in Asia, particularly China. Bitcoin’s sharp positive momentum in 2017 was due to the advent of Asian cryptoinvestors in the market, claim experts.
Towards the end of November 2018, bitcoin investor sentiment took a turn for the worse and the digital currency dropped to below $4,000, wiping off thousands of pounds of gains achieved in the previous months.
April 2019 was a good year for the popular but controversial digital currency, and in May, in the space of a week, it surged by a third.