Bitcoin’s recent price increase has shocked both longtime believers and skeptics alike. One reason for the price rise likely is the new money flowing into the network and the opening of Bitcoin futures trading. Another reason could be that people are hoping for “free coins” from SegWit2x a la Bitcoin Gold or Bitcoin Cash. Regardless, it is a good time to be holding Bitcoin. It is less of a good time for alt-heavy portfolios, but that may not be the case for long.
While Bitcoin is King, Alts May Have Their Day
Waking up to see Bitcoin at US$7.3k is exhilarating, though the price action of other coins leaves something to be desired in comparison. This is not to say that some altcoins have not seen incredible spikes recently. Bitcoin Cash, for one, is trading at about US$650 again for the first time in a while. EOS has hit US$1.35 a coin at the time of writing, and other alts have seen similarly impressive movement. Gains, even if not as impressive as Bitcoin’s, are indicators of healthy cryptos. This is especially true considering the recent bear run affecting most altcoins.
For these reasons, I think that altcoins may still have their day in the spotlight. Even if their current rise is largely correlated to Bitcoin’s price increase, there may be other opportunities for alts to push even higher. Some crypto traders may want to try and protect their newly-made gains by putting that value into a more stable crypto. This is just one way that alts may stay relevant in the face of an unrelenting Bitcoin bull run.
In Case You Had Any Doubt, Bitcoin is Here to Stay
I’ve written in the past about how Bitcoin and other cryptos have secured their place in history because of the communities they create. I still believe that. However, I do think that the price of Bitcoin and any future increase in alt prices will solidify their longevity even further. These higher prices will prompt more institutional investors and peer-to-peer users to hear about cryptos and begin using them.
I had no doubt about cryptos and Bitcoin being here for the long run, but now it seems that institutional money and even the most skeptical minds are coming around to this fact. This also makes me think that alts may enjoy a similar fate, and sooner than previously anticipated.
I do think that we will see a small price correction at some point in the future before another bull run, but I may be inclined to disagree with those who call Bitcoin and cryptos an outright bubble. Even with the correction that I think will happen, I doubt it will move the price so far down so as to be called a “pop.”
Obviously, this is not and should not be taken as investment advice. It is important that everyone conducts their own independent research.