Ever since 2019 started, the bear market of 2018 has been losing momentum, with the bulls emerging numerous times in short intervals. This was the beginning of a crypto recovery, which still has quite a long way to go.
However, last week, Bitcoin saw massive growth in transactions, reaching a 14-month high. These were the levels that were previously seen back in 2017, as BTC approached its highest point in terms of price. The growth also reflected strongly on BTC price, which spiked yesterday from around $4.100 to the current $4,672.
Meanwhile, Bitcoin market cap followed as well, currently sitting above $82.3 billion, while the trading volume exceeded $14.5 billion.
What caused the growth?
While this is an exceptional growth, and potentially a start of the bull run that everyone was waiting for, it did not come without a cause. One of the reasons why BTC surged was last week’s Weiss Ratings report of multiple different cryptocurrencies. The report’s authors even stated themselves that the best time to invest might be very near at this point.
Weiss Ratings has done reports about specific coins in the past as well, and this time, they noticed a significant improvement in coins’ performance. The report mentions growth in user transaction volume, network capacity, as well as network security, which the authors took as an improvement coming from the evolution of the underlying technology.
The report has certainly had an impact on Bitcoin’s performance, and the coin’s network recorded a massive boost in recorded transactions, which grew to 383,186 on March 27th. Bitcoin did not have that many transactions per day since January 4th, 2018 — right before the market crashed. At the time, Bitcoin’s value was still lower than its all-time high, being at around $17,000.
Now, the transaction volume has surged to the same limits, which is taken as a strong fundamental indicator of growth. This is important, as it shows that Bitcoin is once again actively used. The surge in price did not follow immediately, as mentioned, and the long-awaited surge started only yesterday, April 1st.
Of course, even after the spike up, the price is still nowhere near the levels it had in early January 2018. However, it is certainly a start, and it allowed the coin to separate from its major support level at $4,000. This is the first time BTC had reached these heights from mid-November when the BCH hard fork caused a market crash. The community’s greatest hope right now is that it will continue to grow, and potentially reach the pre-crash levels.
Meanwhile, the growth in transaction volume (as well as price) indicates that the infamous crypto winter might finally be over. Bitcoin broke the string of monthly losses even earlier this year, back in February, when a series of small bull runs took the coin just below the $4,000 mark. This level acted as a resistance for a long period, but it finally gave in back in early March. It became just as strong a support on occasion, and it held ever since.
The main question now is where is Bitcoin going from here? While many assume that this is a temporary thing (which coincidentally started on April 1st), there is still hope that the surge is real and that it will continue on. ThinkMarketsUK’s Chief Market Analyst has been very bullish on Bitcoin in his recent statement, saying that the coin might surge past $100,000. This comes as part of his prediction that the price of BTC will go 5x higher than in 2017. However, that is not the end, as he also believes that BTC might reach the height of $400,000 per coin.
While very unlikely to happen in 2019, this might be a reality in several years. For now, the investors are pleased to see Bitcoin price surge yet again, and many have turned to invest before the coin skyrockets once again.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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