As of this writing, bitcoin (BTC) is trading for more than $9,300, having climbed by several hundred dollars per coin in the past day. This is the fourth time that the cryptocurrency has passed this landmark threshold, and it has some analysts wondering what the future holds for the cryptocurrency leader. Bitcoin previously held strongly at a resistance level of $9,000, and, if the momentum continues, it could surge past the $10,000 mark again this week. What does this suggest for the future of the digital currency?
One of the first things to note about bitcoin’s recent gains is that the leading cryptocurrency by market cap is not alone. Indeed, bitcoin cash has led the charts over the past two days in terms of gains, nearly doubling in value. A number of other altcoins have also performed well in the past few days, including ICON, Ethos, EOS and more. According to bitcoinprice.com, all of these tokens recorded gains of more than 10% during that time; for comparison, bitcoin gained around 3% over the same period.
Altcoins in general have shown substantial gains over the past month suggesting that the market is recovering from a slump at the beginning of 2018. Following significant corrections between January and March, it seems likely that the cryptocurrency space is headed upward over the near term.
Midterm Recovery Likely
The digital currency market has added about $200 billion in value since the beginning of April. Nonetheless, the space is likely still going through a midterm recovery. While volatility and uncertainty remain, major players like bitcoin have helped to lead the market in gains over the past weeks. As has been the case for months, most of the altcoins tend to follow the general price trend of bitcoin. Thus, a bullish outlook for BTC suggests that the entire market will see gains, too.
Pantera Capital CEO Dan Morehead stated his belief that bitcoin has crossed a key threshold this month and that he expects the value of BTC to continue to climb through May. Of course, only time will tell if this prediction comes to pass.
Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.
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