Finally, after all of the waiting and persistent hodling through the bear market of 2018 and early 2019, Bitcoin has reached its new 1 year high, $12,240. Cheers to everyone on the new found wealth, but the real party comes when the altcoin market surges.
Currently, altcoins are still down 50 – 90% on average from their previous retraced levels of mid 2018. Not even the all time highs of the altcoins, just the retraced levels which people were upset about only a year ago.
Bitcoin on a Rampage
It seems nothing can stop Bitcoin, but what is the confidence level behind this pump? Only a month ago, people would have argued for a retracement back to the $6,400 level of the Bitcoin price, but instead, we have received a gift unlike any other. This could be a clear indicator to the amount of exposure Bitcoin has generated in the past 2 to 3 years. Seemingly, when Bitcoin would pump and dump in earlier market days, there were not enough investors to quickly turn it around. It took several years for the price of Bitcoin to recover due to the lack of buy pressure.
Today, it seems millionaires and billionaires alike are all setting their eyes on Bitcoin. With this constant underlying buy pressure on the OTC market, exchanges, and in the equity investing sector for blockchain based companies, it is no wonder the BTC price is rebounding so steadily.
Granted the price is surging, we still need to consider the bearish scenario as well as the bullish one. The price could easily be a bull trap trying to lure in gullible investors for a quick organized scheme. Remember, we have had a good amount of negative news hit the market with main net delays, Binance U.S. ban, and regulatory scrutiny. Couple that with the lack of search volume and the increased dominance levels makes this an uncharacteristic movement for Bitcoin.
We can additionally use the altcoins as a measure of comparison. With the lack of price inflation trickling into them, it almost seems artificial for Bitcoin to be so high.
The bullish scenario is a much lighter feel. Bakkt should be launching within several months, Ethereum 2.0 is coming out, Bitcoin is being sought after by billionaires publicly, the halving is coming up in less than a year, and investor confidence has clearly returned. It is no surprise that the price is where it is currently due to the developments of not only Bitcoin’s layer two solutions, but also due to the infrastructure built throughout the market as well.
Libra Regulatory Pressure
In addition, one of the positives of the Facebook’s new Libra Coin is the pressure it puts on the regulatory bodies. No matter what project was launched through the blockchain space, the regulators could easily over look it and put it to the side. Although, that is not the case with Facebook. People noticed so much that congress is even requiring Zuckerburg to come forth and discuss his newest project.
Instead of only grappling with the rule of law. We are now going to grapple with the rule of code.– Aaron Wright, Cardozo Law School; Open Law
The world is not anymore the way it used to be no no no. But seriously, the world is changing and with the huge move that Facebook made recently into the crypto scene, regulators can no longer push off blockchain regulation. We should see some serious thought coming back into the space from the federal government, SEC, and intelligence agencies.