While it is no secret that Bitcoin is back on an upward trajectory in 2019, what makes this rally different than its initial run in 2017?
Christel Quek, Chief Commercial Officer and Co-Founder at BOLT.Global said that Bitcoin has reacted much differently in its revival phase this year, after waking up from the crypto-freeze of 2018. While bitcoin increased by a staggering 215% YTD so far, its revival and growth has been quite mature and logical this year in comparison to 2017, she added.
The initial burst in bitcoin frenzy that propelled the digital token to all-time highs of $18,700s was largely propelled by market frenzy and investors on a so-called FOMO phenomenon (fearing of missing out), seeking to capitalise on the market forces and hoping to make quick money, Quek said. In contrast, 2019 has seen a more mature movement, and also the revival has been a natural reaction to changing crypto-friendly atmosphere in mainstream finance and pro-market forces.
She pointed to Facebook and JP Morgans entry into the space – a major endorsement – to the idea of digital currencies, and the IMFs Christine Lagarde, who has been nominated to be the next president of the European Central Bank, warned that cryptocurrencies are “shaking the system” – a sign that maybe she is ready to accept their inevitable entry into the mainstream financial markets.
In the short term, the support from mainstream entities will propel digital tokens forward, and should benefit not only bitcoin, but also other alterative tokens which have real utility such as our BOLT token, Quek said. As for bitcoin, we may see further steep rise in its price as it is slowly nearing its maximum supply of 21 million. Currently, there are nearly 18 million in circulating supply.