At press time, bitcoin is back up and trading for over $7,900. Just a short way to go and the currency will be back at $8,000.
Bitcoin Is Strong, but Not as Strong as It Should Be
Unfortunately, the currency is still trading for about $1,000 less than where it stood just one or two weeks ago, which means that while the currency has recovered somewhat, there’s still plenty of room for improvement.
The reason behind the drop could be a selloff that occurred early last week. One source says that selloffs like these are “gaining traction.” They’re also proof that many people still do not understand what cryptocurrencies are about.
While many were designed as units of payment, that route hasn’t been fully established as of late. Yes, we’re witnessing the birth of organizations such as Flexa that are designed to make cryptocurrency payments easier for both users and merchants alike. However, this has been a long time in the making given crypto’s constant volatility and vulnerability to price swings.
In the meantime, people have learned to trade crypto and rely on it as an investment. With the growth of bitcoin since early April, the currency is once again spreading its wings and looking to erase some of the bad press it garnered in 2018, and for the most part, it’s been successful, but selloffs show that many people still aren’t using crypto the way that they should.
For example, analyst Oliver Issacs thinks bitcoin could potentially reach $25,000 by the end of the year. These predictions may seem like they’re a dime a dozen, but when you have bulls such as Tim Draper stating figures like $250,000 within the next three to four years, the idea of saving one’s coins to test out such growth should appear a little more intriguing.
Selloffs like these occur because some traders are likely thinking too small. They earn a bit of profit and immediately sell. The whole strategy behind building one’s investments is to sit back and allow them time to grow. Not doing this can lead to two issues, the first being a very personal one – the trader’s wealth cannot expand.
Shouldn’t We Let Investments Grow?
The second is that the crypto market cannot recover the way it should. As mentioned, bitcoin and other digital assets boasted a very rough year in 2018. There were drops and falls aplenty, and many enthusiasts would like to see those losses erased before 2019 expands further.
As of late, bitcoin has spiked somewhat in the past 24 hours, though much praise should also go to altcoins such as Ripple’s XRP, Ethereum and Litecoin. These currencies, and others like them, have experienced solid price boosts over the past day, and will likely continue to do so granted bitcoin can at least remain where it is.
