Before the question in the title can be properly addressed, let’s run through the Bitcoin price from this time last year. Some 365 days earlier, the value of bitcoin was at its all-time high of $19,783.
Bitcoin Price Fluctuations
Since December 2017, Bitcoin (BTC) has lost about 77% of its value. It has been speculated that the rise of Bitcoin’s price to its all-time high was driven by whales. Five days after achieving its all-time high, Bitcoin prices dropped to $13,800. The price then stabilized around the $13,000 mark before finally dropping 50% to $6,200 on the 5th of February 2018, where it was relatively stable for most of the year. Prices oscillated between $5900 and $7000 for most of 2018 until late November when prices dropped below $4,000 for the first time in over a year.
Right now the bitcoin price is just over $4,100. As at this time last year, bitcoin bulls were aiming to buy Lambos in the nearest future. Now, bulls have metamorphosed into bears and don’t even have the vision of buying Toyota Corollas anytime soon. The questions spat out by observers of the crypto space include: ‘Will the bitcoin price ever rise again? Or is it just some huge bubble that’s finally burst?’, ‘When will Bitcoin’s price rise again?’, ‘was it a just a farce when it was said that Bitcoin would take over fiat currency?’
The market capitalization of the cryptocurrency market has dropped to $133 billion, a far cry from its over $800 billion earlier this year. Bitcoin is the reserve currency of the crypto market, similar to the dollar’s function in the traditional financial market. When bitcoin suffers, the whole of the crypto market suffers along too, once the most liquid cryptocurrency takes a hit.
It’s normal for markets to experience bullish and bearish periods. It happens with the stock market, the gold market and several other markets. This phenomenon basically cancels the ‘is bitcoin a bubble’ question.
The price of bitcoin has dropped severally in the past, and the recent market dip is no different. Like every market with investors, bad news leads to a pullout of funds, and good news leads to an injection of cash into the market. The crypto market is simply experiencing its wave of bad news and is dipping now.
Bitcoin Price in 2019
Some scheduled happenings next year have been tipped to increase the bitcoin price next year. They include the approval of a Bitcoin ETF, the release of Bakkt, and Fidelity Investments’ digital asset custody. Although the reply to the Bitcoin ETF has been pushed to February next year, it has been anticipated that there’d be an approval. Bakkt’s release, a bitcoin futures product is backed by the ICE, the owner of the New York Stock Exchange. Fidelity Investments, a huge asset manager, will also introduce an option for its customers to save its assets in bitcoin.
This time, it is believed that the bitcoin price will not be characterized by a hard rise and subsequent hard fall as experienced early this year. The value of the blockchain and cryptocurrency as a whole has been becoming increasingly evident with price inflations in certain parts of the world and the value of currencies being eroded, as is inevitable for fiat currency. Governments have implemented several other uses of the blockchain, and cryptocurrency has been increasingly useful in the normal world, steadily building its infrastructure.