Wow. For a currency that remains horribly vulnerable to price swings and volatility, bitcoin has really managed to fix itself up over the past two days. The currency is trading beyond the $9,000 mark – a massive improvement considering just three days ago it was stuck in the mid-$7,000 range.
Bitcoin Is Defying All Expectations
Bitcoin has experienced a hard period over the past 30 days. Things started off bad in late September when Bakkt – the institutional crypto trading platform owned by the Intercontinental Exchange (ICE) – debuted to very lackluster reception. While things ultimately picked up about a week later, this took a nasty toll on bitcoin, causing it to fall to $8,100 from $9,500 in just a matter of minutes.
From there, things began to improve temporarily, with the currency rising back up to about $8,600 after a few dismal drops into the high $7,000 range. Unfortunately, this good fortune didn’t last long. The currency once again fell back into the low $8,000 range, and then later to about $7,400. This drop was likely caused by the impending hearing that Mark Zuckerberg – CEO of Facebook and head of Libra – would have to endure. Zuckerberg was scheduled to discuss Libra and the company’s financial plans with Congress, and it seems like fear and negative anticipation took over.
However, bitcoin is once again proving itself to be quite resilient. Despite all the ugly hype surrounding the hearing, despite the massive and sudden drops that struck bitcoin over the past week, the currency is back in the $9,000 range, which it hasn’t touched in over a month. This is not only good news for enthusiasts and hodlers, it’s also good news for the crypto industry. It’s showing us once again that bitcoin does has some maturity under its belt. It knows how to handle itself and can seemingly recover quickly regardless of the negative circumstances.
Things Might Stay Strong
At the same time, many believe that bitcoin owes a lot of its good fortune to comments made by Chinese President Xi Jinping, who has stated that the country has a lot of plans for blockchain in the coming months. He has also hailed blockchain as a “breakthrough” technology. If a country as large and as powerful as China can see the value of blockchain, there’s a good chance that bitcoin’s days are far from numbered. Now, we just need regions like the U.S. to get more involved and bitcoin should be set for a very long time.
This sudden spike also gives rise to sentiment that bitcoin could potentially end the year at a solid price. Many feared that 2019 would end just like the previous year, but if BTC can keep up this momentum, perhaps things can cease on a “happier” note, and 2019 can prove to be a bullish time indeed.
