Where we were able to report daily news about Bitcoin and other cryptocurrencies a few years ago, the digital currency seemed to have hibernated in the past year.
Yes last year, because Bitcoin is back, and how! Since just over a week, the currency has started to appreciate again.
Bitcoin breaks annual record
This is partly due to the increased valuations of shares and low interest rates. Investors are clearly more adventurous. You can find more explanations for the sudden revival in this article.
For now, there is great news: Bitcoin set an annual record last weekend. The digital currency tapped a price point of $ 11,600. That is the highest price of the past year.
Positive effect on the market
Bitcoin’s solid growth also has a positive effect on the rest of the market, as we saw in the golden crypto year of 2017. Despite the different purposes and practical plans of the companies behind the coins, at the moment it remains mainly pure trade. In other words: the largest player, Bitcoin, has a major impact on the other cryptocurrencies, both when things go well and when things go bad.
Investors are now profiting greatly from this. Most other cryptocurrencies show strong green numbers. Ethereum (ETH), for example, was still worth 126 euros in early January. Now the counter is at 327 euros. A nice investment, if you happen to have just put some money in that coin in January.
Time for a big correction?
The big question at the moment is mainly: is there going to be a major correction? We often saw this happen in the past: coins that rise rapidly can also fall back just as quickly. For now, experts are still pointing out that Bitcoin bullish is. So the road upwards seems to hold on for a while.
Plus, even though the past is no guarantee of the future, Bitcoin has seldom resisted between $ 11,600 and $ 15,000 in the past. Add to that bad news about the US economy and threat of inflation from support measures, and there seems to be room for further growth.
Do not cheer to early
At least, that currently seems to be the consensus among analysts. That does not mean that BTC will not have to take small blows along the way: investors who are now seasoned hardly know anything else.
But let’s not cheer too soon. Bitcoin and other currencies have seen significant revivals several times in recent years, only to plummet to a low point, far from the almost unbelievable prices of late 2017.
So yes, in the short term there is good money to be made for investors again, but Bitcoin is still very, very far away from a hosanna moment. Not only in terms of value, but especially in terms of technical utility: the future promised in which we all pay with BTC in the supermarket, seems further away than ever.