Unstoppable for eight trading sessions now, Coinbase reflects Bitcoin price (BTC) at $13,000, and it continues to surge. In fact, this is the most prominent level in 2019 that the cryptocurrency has gained. Bloomberg data showed it reaching almost $14,000 in mid-afternoon in New York on January 26, 2019. This reflects an overall return of more than 250% for the year, described as more than 12 times the return of palladium, a precious metal around 30 times as rare as gold.
Bitcoin Value Over the Years
From being worth basically, nothing in 2009 and less than $0.01 in May 2010, Bitcoin’s value has transcended expectations of both its founder Satoshi Nakamoto and traders over the years. Noteworthy to mention, it was only in the first quarter of 2013 that it actually exceeded the $100-mark. The year 2017 was a record one, with the value going over $10,000, which continued until the first quarter of 2018. For the first couple of months in 2019, the price was fairly steady from $3,500 to $4,000, until it began its climb up to what it costs now, tripling in price in less than three months.
Assumptions on What Affected the Bitcoin Price
A lot of factors come into view when determining what caused the Bitcoin rally. The first main factor is the rising mainstream/conventional interest in the currency. Observers discuss Google’s recognition of the currency, with the search engine recommending it when searching for “USD.” More people have been able to own Bitcoin, with the number nearly touching 800,000 as of May 2019. Finally, many big retail locations already enabled crypto payments, including Whole Foods, Nordstrom and Lowe’s. Others include Wikipedia, Microsoft, Virgin Galactic, Expedia and Overstock.
Rising geopolitical tensions and looser monetary policies also boost the demand for Bitcoin. With regard to the expected supply cut in 2020, there is a scheduled “halving” next year, and it is widely believed that this is bearing on Bitcoin’s price action. In halving, it means that payout to Bitcoin miners automatically divides by two every four years to fight inflation. By mining, it means that one can earn the cryptocurrency without having to spend money on it.
On the other hand, there is also the assumed possibility of Bitcoin’s early investors collaborating to lift the price. Some also connect the surge to longer duration indicators, such as the weekly money flow index (MFI) as well as the moving average convergence divergence (MACD).
Bitcoin Price Predictions
Analysts differ in their predictions when it comes to trading cryptocurrencies. Billionaire venture capitalist Tim Draper and former hedge fund manager Mike Novogatz had forecasted the Bitcoin to hit $10,000 by 2018, and it did. Long-term predictions peg the currency to have the capability to reach by as much as $1M a decade or two from now. Impossible to believe, probably. Possible to believe, probably. But Chamath Palihapitiya, founder of the venture capital firm Social Capital and minority stakeholder of the Golden State Warriors, believes so. So does Wences Casares, member of PayPal’s board of directors and CEO of bitcoin wallet Xapo. More staggering predictions, anyone?