Bitcoin, the world’s most popular cryptocurrency, has seen its price leap above the $5,000 mark for the first time since November of 2018. The famously volatile cryptocurrency has endured wild fluctuations in its valuation before, having previously soared to nearly $20,000 at high points before plunging to below $4,000 during early 2019. Recently, however, Bitcoin prices have been slowly but surely ticking upwards again.
Cryptocurrency analysts have been bullish on Bitcoin’s recent prospects because of a number of forthcoming developments that they view as promising for the budding crypto-industry.
The approaching “halvening,” wherein the reward for mining new Bitcoins will be halved, is an anti-inflationary measure that many investors and analysts expect to stabilize the Bitcoin market.
Bitcoin halvening
According to the deVere Group, which writes extensively on cryptocurrency topics, the recent Bitcoin price rebound can largely be accredited to stability brought about by the halvening. The expected 2020 Bitcoin halvening hasn’t actually occurred yet, though historically the reward for “mining” or producing new Bitcoins has been halved every four years.
“History shows that there is typically a considerable Bitcoin surge resulting from halving events,” the deVere Group CEO Nigel Green noted in his analysis.
Whereas cryptocurrencies like Bitcoin have historically been viewed with suspicion by mainstream actors, recent reports indicate that financial analysts, investors, and institutions are beginning to embrace these nascent digital currencies. The Chicago Mercantile Exchange, the world’s largest derivatives exchange, recently announced it would be permitting investors to trade and short Bitcoin.
News that Bitcoin is going to secure an ETF from regulators is also bolstering the digital currency’s market price. According to CryptoNewz, the U.S. Security Exchange Commission has greenlit two applications to approve of Bitcoin-powered exchange-traded funds. Such an ETF arrangement would drastically raise Bitcoin’s already prominent profile while welcoming it further into the world of mainstream economics and investing.
Uptick a phenomenon
Nevertheless, experts continue to argue about the reasons that a cryptocurrency like Bitcoin rise and fall, with many choking up the recent upswing in pricing to market mysteries. Reporting from CNN indicates that some research analysts view the recent uptick as an inexplicable phenomenon.
“Sudden and explosive swings are nothing new in the world of cryptocurrency,” analyst Lukman Otunuga told CNN, yet ”the reason behind bitcoin's aggressive jump remains a mystery."
Arguing that simple market momentum could be the reason that the Bitcoin has taken yet another tumultuous turn in pricing, analysts like Otunuga see little to read from recent developments in Bitcoin’s price.
