The world was at the throat of Bitcoin and other crypto companies when the markets crashed in 2018. From around $20,000 apiece in December 2017, Bitcoin fell to around $3,400 in January 2019. In just a year, several cryptocurrencies lost about 90% of their price value, and this attracted severe criticism from all around.
But Bitcoin and its army of enthusiasts refused to give up. They fought, they worked hard and turned the tide once again. Since February this year, Bitcoin has shown strong signs of recovery and is marching towards its all-time high once again. On June 24, the apex cryptocurrency crossed $11,000 and just within a few hours, it already surpassed $12,000 as well.
While the glorious turn around may have surprised the critics to the point of jealousy, those who have been involved in the industry for long enough expected this even before the bears retreated. In fact, they were unruffled when the world was taunting and laughing at Bitcoin.
All the crypto experts predicted that the bears will end, and the market will reach new heights. For instance, Anthony Pompliano predicted in August 2018 that Bitcoin will crash nearing $3,000 and will bounce back, which it did. Naeem Aslam predicted on June 17, when Bitcoin was priced at $8,988, that it will cross the $11,000 mark within a week, and it did it exactly a week later on June 24.
So why are they so sure? Why does Bitcoin manage to bounce back every time? Well, it’s the very nature of Bitcoin, rise high, fall to the lowest, then rise higher again! In fact, in a recent interview, Blockstack CEO Muneeb Ali explained yet another phenomenal turnaround by Bitcoin. He said,
Crypto markets are very cyclic. I have been in the industry for more than five years, and it’s like the third or the fourth time that it has done basically the same thing but at a different scale. It goes up to its all-time high, then crashes down, takes a long time to bounce back. And if you’ve been in crypto for long enough, you’re pretty much expecting it.
Bitcoin bounces back.
Why? It's a cyclic market.
If you've been in crypto long enough, you were simply expecting it.
P.S: Facebook Libra looks more like AOL than the open internet. pic.twitter.com/ELIdfzDODz
— Muneeb (@muneeb) June 25, 2019
There are speculations doing rounds that the turnaround was due to a number of institutional investors backing crypto markets this time. However, in reality, that’s doesn’t hold true, according to Ali. When asked about it, he dismantled the argument stating that he is skeptical about institutional investors having any impact on the markets, as most of them are not aware of how blockchain and crypto work. He further added that a number of high-quality engineers and developers are entering the space, which has made the protocols much stronger, and the markets more mature.
This indicated that Bitcoin is the king itself, and doesn’t need any ‘big names’ to prove it. It is a strong system, which is definitely given sleepless nights to the stakeholders of the traditional monetary system. Since April, Bitcoin has seen significant growth, even though the traditional assets have been up and down.
Bitcoin since April:
Most correlated asset? Avocados. So maybe macro narratives are of secondary importance and there is something else driving the market. Right?
— Alex Krüger (@krugermacro) June 25, 2019
Bitcoin is a beloved of millions across the globe, and it keeps proving itself worthy of all the love. So let’s pray for it, that Oh Bitcoin, May The Force Be With You!