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Bitcoin

Bitcoin (BTC) Is Racing High; Is a Deja-vu Possible?

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Bitcoin (BTC) is the first coin to bring the change in the whole financial system across the globe by giving a perfect substitute to the people. It not only promised anonymity but also provided complete security of value. It took a while for Bitcoin to establish itself as a promising and credible currency. But as soon as it becomes reliable, the value got heated up. Like all other assets, it also went through a price correction phase or a dull phase. This dull phase is known as Crypto Winter. This whole story now works as a flashback to many serious investors who have been trading for a long time. Bitcoin is experiencing a very similar growth path since the last few months. We will try to analyze the similarity and the probable outcome of the growth cycle.

The Growth and Aftermath-

Bitcoin Price Chart - 27 June

Bitcoin’s fortune started at around the month of March when the coin was being valued around 1095 USD. It got a straight push of 320.04% over 153 days and reached 4602 USD. For a month the coin rested at this point, and contrary to most experts’ opinion, the coin again got heated and was pushed by 213.14% in the next 91 days. This period saw the best days of Bitcoin. It even reached its highest ever point at 20,089.00 USD on 17th December 2017. The whole market was taken into shock, and many new investors, including speculators, flocked into Bitcoin for experiencing the growth story.

But from the mid of December, the coin started losing value. No one had any idea that the coin was going to lose a whopping 25% over just 2 months’ time period. And surprising many, the coin lost another 31.95% in the next 28 days. The coin was now at 7133 USD from 20,000 USD in just 3 months. After a short stint of growth, the coin again lost 53.85% of its value to reach just 3482 USD by the 1st of January 2019.

The Deja-vu-

Bitcoin has been on fire for the last few days. It has added almost 8700 USD since April and is now on fire. Experts have predicted that Bitcoin may get good growth and even go beyond 15,000 USD in the recent future. But there is a going apprehension that the coin may face a similar fate it got in the 2017 boom. Though the whole scenario lasted for 2 years, the 2017 boom ended with a crypto winter in 2018.

From the onset of 2019 until the current time, the coin got increased by 246%. And it is very similar to the growth Bitcoin had got between 01st September 2017 and 17th December 2017. In 2017 boom the coin has got hiked by 213% over 91 days, and in 2019, the coin has got hiked by 246% over 151 days. There are growing apprehensions by eminent market influencers as well over Twitter. Some experts have even gone to the extent of drawing a parallel of 2019’s growth not only with 2017 but also with 2011.

Conclusion-

Though the coin’s initial growth pattern matches the pattern of 2017, it is too early to predict anything very radical about Bitcoin now. As per our prediction, Bitcoin may cool off after getting around 15,000 USD. So this time, it may not give huge shocks to the investors. Another major factor is the reduced number of speculators as well. So, market volatility of 2017’s degree seems unlikely.

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Mehak Punjabi

Mehak Punjabi is a post graduate in MBA with specialization in Finance and has joined CryptonewsZ with a skill building view in the world of cryptocurrency and blockchain. She is dynamic and a quick learner with a hold on financial analysis.
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