Bitcoin: did it really rise or is it just another illusion?

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The most valuable cryptocurrency in the current market suffered a sudden rise in its price. However, analysts are not so optimistic

Bitcoin's price has been noted for its instability. You just need to see the graphs that show its fluctuation in the market to understand that it is not only an asset that still has a long way to go in the common market, but that its price is not as stable as you would like. Of course, when Bitcoin started operations, back in 2005, its price did not remotely reach what is now considered the minimum. However, fluctuation itself is a factor that has characterized the development of this cryptocurrency.

Leer en español: Bitcoin: ¿realmente al alza o es solo otra ilusión?

A historical moment was lived in 2017, exactly on December 15, when the cryptocurrency reached its historical value of almost 20,000 dollars (19,650), which caused chaos of all kinds. Investors saw it as a golden signal of the future of the cryptocurrency, while its detractors saw it as the maximum sign of the bubble that this asset represents. Even today, two years later, many economic experts, especially those aligned with traditional media such as banks, consider cryptocurrencies as a bubble that constantly threatens to explode.

What has Bitcoin fallen and rise over time?

The situation is now different than in 2017, as the rebound in the value of Bitcoin has been generated in a much more controlled manner, which could attract more investors instead of pushing them away. From the minimum of USD $ 3,100 Bitcoin reached in December of last year, the cryptocurrency has rebounded from April 1 to reach a maximum of USD $ 5,317 on April 8. From then on, the price has remained more or less stable, around USD $ 5,200, but with slight downward trends. This generates two questions: 1) what caused the price to rise, in the first place ?; 2) if the price was up, why does it decrease now?

Starting with the second question, as already mentioned and as Lukman Otunuga, an analyst of the FXTM firm, affirms, the sudden changes in the price of this and other cryptocurrencies are not something new or something that should surprise, so both a rise and a fall are just normal. However, and going to the first question, it is not common that there is a rebound in the price so serious only as a result of chance. Unfortunately, analysts do not have a fixed cause to determine the rise in prices, although a sale has been identified in three exchange platforms destined to these cryptocurrencies that, according to what it is said, could motivate the rise and, even more, could have as its only objective the rise.

Read also: 2018 was difficult, but Bitcoin refuses to die

And what comes then for Bitcoin? Opinions are divided. For Vinny Lingham, for example, co-founder and CEO of Civic, the picture is obscure. Lingham sees in the rebound of Bitcoin only a repetition of what happened in 2017, although on a smaller scale. In this way, for Lingham, this cryptocurrency will see its prices fall again and its purchase will not be profitable, even less at this juncture.

On the other hand, there is the Chinese businessman Changpeng Zhao, founder and CEO of Binance, who has a deeply optimistic position. His argument is that, if the price of Bitcoin rose, it is precisely because there were investors who had money destined for that purpose and had not yet been encouraged, but who see in the cryptocurrency a solid future. Zhao sees this rebound as a definitive proof that cryptocurrencies are consolidated worldwide as the new economic path outside of traditional schemes. This was said in the framework of the Crypto Trader organized by CNBC.

The future of cryptocurrencies, even for analysts and those involved in its management and use, is more uncertain than what one wants to see. In this way, there is still much left for casual users, those who are part of traditional schemes, to become an active part of this new concept.

LatinAmerican Post | Jorge Ovalle

Translated from "Bitcoin: ¿realmente al alza o es solo otra ilusión?"