Bitcoin has gained nearly $1,000 since the beginning of this week as prices climbed from around $6,700 to a high of $7,500. Indeed, prices spiked by almost 10 per cent during a remarkable hour of trading on Tuesday.
Expectedly, bitcoin’s gain helped to pull up the price of other cryptocurrencies or altcoins as they are also known. Ethereum, Ripple and Bitcoin Cash all rose by between 5 and 8 per cent over a 24-hour period, while Stellar rose by an eye-popping 22 per cent.
This week’s bounce is the single biggest price gain that bitcoin has enjoyed in 3 months. And it has got many crypto analysts trying to explain the reason behind the latest price surge. Possible reasons include the renewed interest from institutional investors with reports emerging earlier in the week that investment firm BlackRock was looking into cryptocurrencies and blockchain technology.
Other important developments include the news that Swiss-based SIX exchange was planning to launch a fully integrated crypto exchange and of course the SEC granting Coinbase the permission to list ICOs on its platform.
Despite the recent gains, the prices of nearly all crypto assets remain relatively low compared to December 2017 when the market reached its all-time-high with bitcoin selling for $19,700.
But seasoned experts are saying that after months of bearish sentiments, which saw most cryptocurrencies lose up to half of their market capitalization, the bulls may have finally taken over while bringing the industry closer the cusp of something monumental.
With the market recovering and prices still relatively low, experts say now is the time for crypto newbies to make their first investment in an industry that would revolutionize everything from finance to the internet.
Indeed, there is a lot in common between today’s altcoin market and what major tech stocks such as Amazon and Apple looked like some 20 years ago. In 1998, Amazon’s share price was trading for an average of $20. The same stock is now valued at $1,846, a percentage increase of 9,130% in 20 years.
The current low prices of altcoins like TRX ($0.037) and XRP ($0.47) can be compared to cheapness of Amazon (AMZN) and Apple (AAPL) in 1998. But with the frenzied pace of development in the crypto space, these digital assets would not need 20 years to show gains similar to those of AAPL and AMZN as the events leading up to last year’s incredible bullish run have shown.
As Romal Almazo, cryptocurrency lead at consultancy firm Capco, explained; “If you believe that fiat currency will eventually merge with cryptocurrencies as many do, then it’s only a matter of time before this trickle becomes a flood…This is all part of a natural evolutionary process which has been repeated many times in history – when it comes to technology.”