For the first time since December 2017, Bitcoin has climbed past $ 18,000 on Wednesday, continuing a remarkable surge for this year’s cryptocurrency. Bitcoin’s price traded about 8.6 percent higher at $18,521 or €15,620 on Friday, hitting a level it hasn’t hit since Dec. 20, 2017.
The market capitalization of Bitcoin has reached a new peak of $343 billion, eclipsing a record of $328 billion set in December 2017 according to data from coinmarketcap. Bitcoin began to surge in October at about the time PayPal announced it would allow its users to buy, sell, and hold the cryptocurrency on its network. The price has gained 70% since the start of last month.
As per Bloomberg, “Markets are drawn to round numbers,” said Antoni Trenchev, co-founder and managing partner of Nexo in London, which bills itself as the world’s biggest crypto lender. “Since we passed $16,000, the next stop was $18,000 now it’s $20,000.”
However as per Forbes, a Bitcoin price correction might be just around the corner with one Bitcoin price analytics company predicting Bitcoin could soon fall back to just $14,000. “Bitcoin is performing better than expected,” said Ian Balina, the chief executive of Washington-based Token Metrics, which uses technical analysis of historical price data to make forecasts about the future price of Bitcoin and other cryptocurrencies, speaking over the phone.
“While still bullish long-term due to macro-economic factors and large corporations getting into crypto, we expect Bitcoin could correct back to around $14,000 by the first week of December.”
Some people in crypto are skeptical about the rapid run higher.
“We’re overextended here and due for pullback,” said Vijay Ayyar, head of business development with crypto exchange Luno to Bloomberg. “Anywhere from between $18,000-$19,000 is potentially a top. We should have many people selling at these levels, especially those that bought at the top in 2017-18. Major rallies in the past always had 30-40% corrections. No reason to believe this time is different.”
But crypto enthusiasts have watched Bitcoin tick higher over the year, with many setting their sights on the peak of nearly $20,000 in December 2017, while others are seeking even higher levels.
— Fyggex (@fyggexchange) August 12, 2020
Image: Gerd Altmann
*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.