Hold on to your seatbelts everyone, bitcoin has one again crossed over $12,000 once again. But this time feels very different than just a few months ago after reaching this milestone and is very significant! The market for bitcoin seems extremely bullish for BTC at the moment, and many analysts are expecting bitcoin to continue towards reaching new all-time highs in the somewhat near future. You can feel the excitement in the market. But will it be able to sustain this movement? And what will happen to the altcoins that have been drained from bitcoin's rise!?
Let's talk about this more.
As I mentioned before, just a few months ago bitcoin had reached a price level of over $12,000, but it was quickly rejected and would fall to under $10,000 before we finally saw the price bounce back up. This left many wondering if it this was indeed a false bull market and would we quickly return to a bear market? The market before that price fall was very different than what we have today. In the USA, we were freshly off a government stimulus of $1,200, and it was expected that we would soon be receiving the next stimulus. That never came to fruition. And then came an incredible amount of bearish news that in the past when bitcoin was much less established would have certainly turned the market bearish.
Bitcoin has gone through a lot since the middle of summer when this all took place.
Covid continues to ravage the world and markets as well. People are out of work, salaries have dipped, companies are laying off employees, and we have lost a lot of people.
While the US isn't the end-all, be-all to the bitcoin market; it does have a giant effect on it. The next stimulus was expected to be given out during the summer when the crypto markets were at their peak. The market had it priced in. And when that stimulus never came, the money left the market and naturally the prices fell.
Then we had bearish after bearish exchange news stories coming out. The first that sent the market into a frenzy was when the largest exchange in South Korea was raided, for suspicions of the founder running fraud.
Next came even bigger news. One of the largest exchanges in the world, KuCoin was hacked, losing over $200 million worth of funds. Thankfully KuCoin promised to refund all of its users their entitled funds.
But in even bigger news, arrest warrants were issued for the leaders of BitMex, one of the largest bitcoin futures exchanges. Which included its CEO Arthur Hayes, who was later forced to resign. If that wasn't enough, withdrawals on OKEx were also frozen, because its founder had been taken into custody by the police. Each and every one of these stories came out just as bitcoin was finally recovering in price, and each time this would take BTC back down. If anything, it is become extremely clear that the governments around have become extremely interested in cryptocurrencies and have begun their move, perhaps against it.
Then you also have the whole situation that happened with President Trump contracting Covid.
While all of this may seem bearish; let me tell you why it is extremely bullish.
Like I mentioned before, in the past perhaps just one of these bearish events would have been game over for the bull market and send bitcoin to extreme lows. But while all of this happened, bitcoin maintained a price over $10,000, showing extreme support and strength. Not only did it show great support, but after the initial price drop for these events, each and every time the price did recover and even increase further. It handled the adversity like a champ.
But that isn't all. Yes we have had an incredible amount of bearish news. But day by day we are seeing incredible bullish news.
In fact, bitcoin has now maintained a price over $10,000 for a record length of time. Longer than 2017/18, longer than 2019; the longest ever. It appears bitcoin is getting its footing, and preparing for the next move up.
We have seen the beginning of the corporate world enter the bitcoin space. Microstrategy invested over $400 million in bitcoin, Square also purchasing over $50 million, and there is even more. The floodgates are beginning to open, and it isn't going to stop.
Finally bitcoin has reached over $12,000 again, but this time feels different. It has gone through many "tests." During this recent price movement, it has drained the altcoins as well. This is an exact repeat of what happened during the last bull market in 2016/17.
While there are incredible opportunities to make profits with altcoins, they do remain more risky than bitcoin. With each day that passes, I become more confident that we are going to see something very special happen, and it isn't to late to join in.
Are you feeling bullish and what do you think of the bitcoin price? Will it be able to continue rising, and how high will it go? Personally, I'm expecting it to reach 16-17k in the near future.
As always, thank you for reading!