According to Coinmarketcap the price of Bitcoin was up by more than 4% Tuesday, as high as $9,350 per coin, continuing a streak of gains that have pushed the world’s largest cryptocurrency to its highest price since mid-March.
This is good news for Bitcoin, which has been recently burdened with several threats, including the risk of increased regulation by the US Securities and Exchange Commission (SEC) and regulators worldwide shutting down services due to fears of criminal money laundering.
The coin has witnessed its worst first quarter ever since its establishment, falling by 48 percent.
The recent price surge has been associated with the end of the tax season in the US. Many people have been selling Bitcoin for fiat to clear their tax burdens. The Internal Revenue Service (IRS) views Bitcoin and other cryptocurrencies as property, meaning profits from transactions are subject to Capital Gains Tax.
Analysts are bullish that the rally is not over yet, as some predict that the coin will hit the $20,000 mark before the end of the year. Tom Lee, co-founder and head of research at Fundstrat Global Advisors, has variously stated that the coin will get to where it was late last year – above $19,000.
In an interview with Business Insider, Matthew Newton, an analyst at crypto firm eToro, attributed the latest surge to a new US tax year. Newton explained,
We’ve seen a sustained Bitcoin rise in the past week as confidence is buoyed, taking prices beyond the $9k mark. A boom in Bitcoin is partly the result of a new US tax year, as investors are buying cryptos after they shed crypto-assets ahead of tax day last week,
Altcoins Stealing the Show
Investors have started to spot a trend in the market in the past two weeks; when Bitcoin’s price surges, altcoins and tokens tend to surge in turn by larger margins; and when Bitcoin’s price falls, altcoins drop by larger percentages.
According to CCN, some of the best performing altcoins include ICON (ICX), Ethos (BQX), EOS, and Kyber Network (KNC). All of these ERC-20 tokens have recorded more than 10 percent gains against Bitcoin, which also recorded its own solid gain of around 3 percent.
Following the good performance by Bitcoin throughout April, the market has added almost $200 billion in total since early April. However, the cryptocurrency market is still going through a mid-term recovery and in terms of extreme volatility and uncertainty, dominant cryptocurrencies such as Bitcoin and Ethereum lead the market.
Still, altcoins and tokens are generally following the price trend of Bitcoin, and a bullish development in Bitcoin’s price will likely result in large gains for altcoin investors.
Do you think Bitcoin will hit the $20,000 mark? Please let us know in the comments section.