Cryptocurrency market had the worst times in 2018, as several digital coins lost as much as 90% of their price value during the year. Bitcoin, the world’s largest cryptocurrency, also lost its price substantially.
After peaking at around $20,000 in December 2017, Bitcoin kept losing through steadily. But during the second half of last year, it started it six months long losing streak, which finally ended in February earlier this year. Since then, Bitcoin has shown signs of recovery and has been more or growing.
In the last few days, the bulls are moving very strong for Bitcoin. The popular cryptocurrency is on a rally, which shook the entire crypto market this week. Bitcoin prices have shot up tremendously, first from $4,200 to $5,000 in an hour, at the beginning of the week. However, Bitcoin was traded for over $10,000 against a Stablecoin for a brief period. This made an investor pay double the prevailing price of Bitcoin.
Even though Bitcoin is priced at around $5,000 on most crypto exchanges currently, the massive rally which crypto markets have been experiencing for the past few days, the price for which Bitcoin is traded against a Stablecoin pair rose to over $10,000 temporarily. The $10,999 apiece price for BTC against the Stablecoin was traded on the world’s largest crypto exchange Binance. Some experts and established traders believe that this momentary price hike is a glimpse of what the future holds for Bitcoin market.
StableUSD (USDS), against which the double-priced trade took place, is a Stablecoin backed by the US Dollar, governed by Stably Inc. It is currently ranked 419th on the CoinMarketCap, and this relatively thin order book may have triggered a market buy to push the price of BTC up significantly for filling the order while clearing out the order book.
A rise of Bitcoin is extremely vital, not only for its investors but also for the market as a whole. It is the epitome of success for crypto markets, and any swing in its behaviour influences performances of other altcoins. When Bitcoin was at its peak in December 2017, the entire crypto market was booming, and as Bitcoin declined, the entire market collapsed.
Bitcoin was last traded for over the $10,000 mark on March 07 last year. However, the biggest cryptocurrency dipped severely, falling back to test the $6,000 support, which broke ultimately, after recurring visits. This triggered a market collapse, from which recovery is far from complete.
Relying on the bear and bull cycles of past, market experts and analysts believe that Bitcoin will rise steadily, and touch its all-time peak of $20,000 again, as early as March 2021. A group of crypto analysts support their prediction with the concept of ‘Bitcoin Halving,’ which minimises the block rewards miners receive for validating Bitcoin blocks. This event curtails the supply of Bitcoin that miners sell in the market, which will expectedly raise the price of Bitcoin.
Extreme volatility in the crypto space has discouraged investors, especially after a horrendous 2018. However, the recent developments, outside the realm of buying and selling, have been quite encouraging. For instance, central banks of crisis-ridden countries like Argentina and Zimbabwe are exploring the possibilities of backing their fiat currencies with Bitcoin. Also, adoption of cryptocurrencies at large is on the rise, as several international companies are now allowing users to pay with bitcoins and other altcoins.
Moreover, the adoption of digital tokens by new and existing global payments platforms, including VISA and IBM backed World Wire, will give a further boost to the demand for cryptocurrencies to make payments. As new areas demand come to light, the market will grow with more stability.