All cryptocurrency markets are going through an interesting phase right now. There is a clear desire for bullish action, yet it’s failed to materialize in any significant manner. Even though things may not look as bullish as some people may want them to, it is only a matter of time until the Bitcoin price returns to higher levels.
The Bullish Case for Bitcoin
As we have seen over the past few years, the Bitcoin price tends to drop in value quite spectacularly during the first half of the year. Last year, the Bitcoin price was pretty boring to watch, as very little happened until Q2 and Q3. In the final three months of 2017, all expectations were surpassed, which eventually caused the massive correction we saw cripple all cryptocurrency markets in early 2018. So far, all of the individual markets are still recovering from that onslaught.
Even so, there is no reason to think the Bitcoin price will remain this low for an extended period of time. If the previous years are any indication of what will happen, the next uptrend will begin to materialize pretty soon. The past week has seen the Bitcoin price rise from US$9,500 to over US$11,000, although it is still too early to call the latter value a new stable floor. It is possible things will only get better from here on out, but crypto markets hardly ever evolve in the direction most people expect them to.
There are bullish signals on Bitcoin’s radar, depending on how you interpret them. First of all, we’re seeing more and more people flock to Bitcoin and other cryptocurrencies as fears of Wall Street’s instability echo louder than ever before. Combined with the struggles which banks and other service providers are facing right now, it is only a matter of time until Bitcoin starts becoming a lot more popular – and valuable – in this regard.
According to some people, Bitcoin is actually underway to become the digital gold of 2018. While that makes it sound like Bitcoin is losing its position as a currency first and foremost, it also means the world’s leading cryptocurrency may become the default hedge against financial instability. That may seem like wishful thinking at this stage, but the overall performance of Bitcoin compared to that of gold cannot be downplayed.
Furthermore, current aggressive actions on the part of the SEC will work out in Bitcoin’s favor as well. The active crackdown on potentially fake ICOs and fraudulent schemes involving Bitcoin and other cryptocurrencies will bring more legitimacy to this industry overall. It is not unlikely that some big changes will occur as a result, but it is evident this change is direly needed. Weeding out the illegitimate and illicit element from cryptocurrency can only be considered a good thing in the long run.
Whether or not we will see more people invest in cryptocurrencies moving forward remains to be determined. There are a lot of positive signs for Bitcoin as of right now, but it may take a while for an uptrend to materialize. That is not necessarily a bad thing, mind you, as the time for quick profits is pretty much over for the time being. It is just a matter of time until the Bitcoin price returns to US$15,000 and potentially a lot higher. Whether that will happen this year remains to be determined.