After months and months of Cryptocurrency prices continuing to fall, it comes as both a surprise and relief that Bitcoin’s price has finally increased significantly again! The price surge was definitely unexpected and the value rose from $7000 to just over $8000 for a brief time earlier this week- making it the biggest spike in several months.
No one can say for sure what caused the spike. Bitcoin is far too big of a Cryptocurrency for the surge to be caused by pump and dump groups. The increase in price also didn’t correlate to any current crypto news. So what could it be? It has been suggested that once Bitcoin reached the $7000 mark again it instilled a renewed confidence in the coin and investors and traders started buying into the world’s best Cryptocurrency once again.
This year has been a bit of a slow start for Bitcoin, and it has been suspected that the massive highs that Bitcoin reached last year (as high as $20,000 for a single Bitcoin) were caused by a bubble – but perhaps this price increase will continue and prove the bubble theory wrong.
And it is not just Bitcoin who has their prices soaring- the surge seems to have positively affected a whole range of top Cryptocurrencies, with Ethereum, Ripple, Bitcoin Cash and Eos all rising to new heights this week. The gains that they enjoyed averaged to around a 10 percent in a 24 hour period. Experts are predicting and hoping for this to be a turning point in the slump that has been haunting the crypto world for some time now, with many experts believing that Bitcoin and its friends could very well return to the impressive prices of 2017 and even beyond that.
The slump is thought to have been brought about by the many scams and phishing schemes that surfaced last year and early this year- ultimately breaking many traders and investors confidence in the industry. But a lot of work is going into the industry by crypto enthusiasts, banks and governments to regulate Cryptocurrency and make it safer for everyone to use. The regulation may take away from Satoshi Nakamoto’s original dream of having a fully decentralized system – but it appears that people need certain laws and regulations in place to stay in line and in order to trust anything.
But not everyone is a Bitcoin supporter that gains joy from its rises. The very well-known Barclays Bank went as far as to call the massive price rises of 2017 an ‘infection’. We suspect that they saw the price fall as a cure to this so-called disease and they must have been shocked to see Bitcoin start making its comeback.
It is very hard to predict the future of Bitcoin and other Cryptocurrencies as it depends on so many different factors and the industry is volatile to say the least. But this recent price surge does show promise for the future and if nothing else suggests that buyers are gaining confidence in Bitcoin once again.