Bitcoin Soars 80%: Bitcoin (BTC) price has been on a rollercoaster over the last couple of months.The lack of underlying value and unpredictable nature of digital currencies continues to stun investors with massive sideways movements.
Since showing the considerable upside volatility at the end of last year, bitcoin’s downside volatility led the price to bottom near $6,000.
After the massive selloff in late January and early February, bitcoin price rose 80% in the last two weeks alone. Bitcoin price has breached the $11000 mark during the weekend; the coin is trading at just over $11,000 this morning – and now has the market capitalization of $185 billion.
The broader rally in cryptocurrency prices has pushed the total market capitalization above $500 billion for the first time in the last three weeks.
Why Does Bitcoin Soars 80%?
Regulatory concerns along with the price manipulation and bearish remarks from notables were the key drivers for the violent selloff in bitcoin prices.
However, softer than expected regulatory actions from South Korea and the United Stated led bulls to control the market over the last two weeks. South Korean authorities have been steadily moving back from their earlier strict stance. They have implemented less severe regulatory actions than what investors had initially thought.
The U.S. CFTC chairman said, “regulators should have a thoughtful and balanced response and not a dismissive one.”
Moreover, predictions of sustainable growth in bitcoin prices from key analysts have been adding to bullish sentiments.
Saxo Bank analyst, Kay Van-Petersen, who appropriately predicted the substantial rally in cryptocurrency price at the start of last year – now forecasts that bitcoin is set to hit the $100,000 mark.
Then How Prices Are Heading for Another Crash?
Cryptocurrencies are in early stages, and it’s quite difficult to predict whether they will turn out to be a huge bubble, or if they can replace the traditional financial world.
The Ethereum founder, Vitalik Buterin warned investors for the possible slump. He suggested investors invest the money only if they can afford to lose.
He said: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. Don’t put in more money than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.
Featured Image: twitter