Bitcoin and cryptocurrency has captured the attention of the public at the end of 2017, when after a big rally a year-long bitcoin price soared from less than $10 000 nearly $20 000 less than 20 days.
On 26 June, the price of bitcoin has reached new heights — on the Luxembourg stock exchange Bitstamp it’s $12860. Thus, the cryptocurrency per day increased by almost 15%. In early April a bitcoin was worth less than $5000.
Bitcoin in 2018 fell into a bear market, but now appears to have returned. But can a cryptocurrency to keep this level or it will again fall?
The growth of bitcoin prices in 2017 were partially due to the fear to miss a good deal, when people who knew little about bitcoin or cryptocurrencies, have invested heavily under the influence of feverish media interest in bitcoin and rumors that the bull will continue, simultaneously enriching all participants.
Now the level of interest in bitcoin, if you look at Google Trends data, much lower than it was at the end of 2017. “Bitcoin for the first time reached this level during the stock rush, when most of the world only learned about this new digital asset,” wrote this week, a senior market analyst at eToro Mattie Greenspan in a letter to customers. “However, this time the rise seems to be longer and the current price is more realistic given the current awareness of market participants and the prevalence of currency.”
Greenspan also pointed to the number of transactions made every second on the bitcoin blockchain, which from the beginning of 2019 exceeds 3.5 transactions per second in 2017 this figure was reached, but not for long.
Meanwhile, the interest in bitcoin and cryptocurrencies from some of the largest it companies in the world, including Facebook and Apple, was interpreted as a sign of confidence in bitcoin, cryptocurrency and the blockchain technology.
In the next 12 months there will be a so-called Polovinnaya (halving) of the two largest cryptocurrency, resulting in rewards for miners mined blocks will immediately be reduced by half. Halving competitor of bitcoin, litecoin, scheduled for August, while the rewards for miners of bitcoin will drop around may of next year.
In may, us venture investor Jason Calacanis commented on the “promising” progress of bitcoin over the past months and years, but warned that the market is close to a “supply shock” due next year Polovinnaya of bitcoin.
On the horizon, perhaps the clouds are gathering. This week The Wall Street Journal reported that hedge funds began to bet on the price decline of bitcoin.
“Traditional market participants may treat bitcoin more skeptical than the young traders,” he told the WSJ, portfolio Manager at Chicago management company Typhon Capital Management.
Translation Natalia Balabanchevo
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