Since the start of 2018, Bitcoin’s price has seemingly been on a never-ending bearish rally that saw the price of the dominant cryptocurrency fall by 70% to a price as low as $5,000. Although its lowest price in the past months is anything but a paltry sum for any of the altcoins, Ethereum included, Bitcoin’s price has still struggled to overcome the bearish trend that has plagued it since its glory days of the $20,000 mark.
However, the past week has been an improvement after the coin recovered beyond the $9,000 mark for the first time since March 14th. In fact, the uptrend in Bitcoin’s price has reflected positively on the rest of the coins, but the jury is still out on whether the climb is here to stay or just another pump before a dump.
Is the Bitcoin Climb a Short-Lived recovery?
Frankly, there is no straightforward answer to that question as it is still quite early for any investor or crypto enthusiast to determine whether the current climb in the crypto market is permanent or set to be short-lived.
Obviously, market volatility and price fluctuations have become commonplace in the crypto community and Bitcoin has bounced back from a fall in price countless times. However, the market has experienced major corrections in the past few months with Bitcoin changing hands at a low of $5,000, only to recover back to the $10,000 mark then back down to the $7,000 mark in a short space of time. Furthermore, its recent price climb is probably just another rebound back to the $10,000 and above mark, seeing that it peaked to about $11,600 only two weeks ago.
For now, most of the crypto community is enjoying the positive market performance that has also trickled down to altcoins such as Ethereum and Cardano, with the overall market capitalization of the entire market going up to the $350 billion mark from its previous mark of $280 billion within hours.
What Is Causing the Cryptocurrency Price Volatility?
Most reports indicate that the previous correction that saw Bitcoin lose 70 percent of its value was mostly due to the negative, exaggerated and intensified media coverage directed toward the crypto space in general. Plus, Bitcoin and the crypto world have also been on the receiving end of baseless price predictions by traditional financial industry gatekeepers, who have also contributed to the spread of false reviews and information on the subject of Bitcoin and cryptocurrencies.
For instance, no sooner had the most recent announcement by the global financial watchdog at the G20 summit been released, than the cryptocurrency market saw a recovery from the loses. The announcement informed of plans by governments not to issue additional regulations or restrictions on cryptocurrencies, while setting up sustainable conditions for existing regulations.
Even though Bitcoin is the most popular and expensive coin, its overall upward projection has significantly affected the price of a variety of altcoins in the market. Ethereum, Litecoin, Cardano, OmiseGo and Nano, for instance, are only a few examples of some of the coins that have appreciated in price by over 9% each. In fact, ICON (also known as the Ethereum of South Korea) has seen one of the best performances today with its price going up by about 60% percent. Without a doubt, the fact that the coin has been listed on the Bithumb exchange, which is among the largest cryptocurrency exchanges in South Korea, coupled with some partnerships and an airdrop, are also contributing factors.
However, even though a huge chunk of investors in the crypto space are mostly driven by FOMO and panic sell offs, more and more investors in the mainstream financial markets are being driven into the market, and this might result in more short-term rallies than long ones.
What do you think will continue to happen in the coming weeks in the cryptocurrency market? Give us your thoughts and opinions in the comments section.