The price of bitcoin has escalated once again to higher levels, surpassing the $1400 range on a few exchanges. As bitcoin’s successful run continues, many are starting to wonder — How high will the price go?
Bitcoin Outperforms Traditional Assets as the Price Continues to Climb to New Heights
Bitcoin’s value is rising to levels unseen before as the decentralized currency now captures a $23 billion market capitalization. The first quarter of 2017 has been good for bitcoin as the price has remained above 4-digits consistently for most of the year. Furthermore, the price per bitcoin has outperformed every fiat currency in existence and surpassed the spot price of one troy ounce of gold as well. People are beginning to realize bitcoin is a safe haven for failing economies, an escape from capital controls, and a digital asset like no other.
The Rise of Ethereum and Overall Cryptocurrency Markets
Bitcoin isn’t the only cryptocurrency performing so well. In fact, a great majority of the top twenty token assets according to Coinmarketcap.com have seen significant price rises. The forerunner of all these alternative tokens, Ethereum is second largest market compared to bitcoin and is capturing quite a bit of value very fast. Ethereum has reached an all time high as well reaching $82 per ETH on April 30. Alongside this, Ethereum has amassed a whopping $7 billion dollar market capitalization in mere days.
Meanwhile, traditional markets like the NYSE, are floundering compared to the exciting growth of cryptocurrency markets. Overall cryptocurrency markets are now approaching $40 billion in net worth as many altcoins are performing like never before. Many spectators believe digital assets like bitcoin have moved from being a fringe technology to the mainstream this year.
The Honey Badger Just Doesn’t Care
Furthermore, bitcoin has managed to shrug off negative news more easily than ever before. Last summer’s Bitfinex incident shocked markets but steadily rebounded after the hack. The news stemming from Chinese bitcoin exchanges this past January suspending withdrawals also gave the price a little hiccup, but subsequently, the BTC price regained its value. Moreover, just recently Bitfinex has announced exchange issues with banking partners and halted USD withdrawals. Once again the ‘Honey Badger’ of money just doesn’t care, and the price has continued to climb.
Quite a few speculators and forecasters believe the price will test the $1500-2000 range this year. So far bitcoin is up over 200 percent looking at the year-over-year average and proving to be an unstoppable monetary force.
Exponential Global Adoption
There have been many reasons to why the price of bitcoin is continuing to rise. Some are attributing the demand to countries like Japan, India, and China which are all experiencing exponential bitcoin adoption. Speculators are also pointing at failing centrally planned economies, government’s fiat manipulation, and demonetization, and capital controls stopping individual citizens from moving wealth. Furthermore, research stemming from the Cambridge University study reveals the bitcoin economy is bigger than ever before and continues to grow.
It’s exciting to see the bitcoin ecosystem doing so well, especially after the Mt Gox scandal, 2014’s bearish decline, the Bitfinex hack, and the many other negative headlines that seemed to try and slow bitcoin down. The bitcoin train continues to chug forward proving to be the most resilient peer-to-peer currency this world has ever seen.
What do you think about bitcoin’s performance? Let us know in the comments below
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