Crypto Trends: Why Is Bitcoin Surging?

Crypto Trends: Why Is Bitcoin Surging?

Few financial assets in the history of human culture have experienced the ride that has been undertaken by cryptocurrency investors over the last few years. Of course, Bitcoin is the most famous cryptocurrency (and is generally viewed as having started the entire crypto movement). But the large market cap that is associated with Bitcoin has not prevented the cryptocurrency from exhibiting extreme volatility levels in the last two years.

In 2017, the value of a single Bitcoin rallied from below $1,000 to roughly $20,000. All of this happened in what was roughly a 12-month period. Of course, this is much more than simple media buzz. This is real money on the line and many have suggested that nothing less than the future of the financial market is at state in terms of the final outcome in market valuations.

But while the world has quickly developed a keen interest in Bitcoin and other cryptocurrencies, the space has also seen its share of skepticism. This led to major declines in market values in 2018, and those events created what many now refer to as the “Crypto Winter” for Bitcoin and other popular cryptocurrencies.

So far, market activity in the year 2019 has been much more favorable to those with large positions in Bitcoin. The popular crypto asset has again taken the world by surprise and surged to its highest levels in quite some time. In fact, the 2019 rally in Bitcoin has actually surpassed the 2017 rallies in several significant ways. This has shown many potential investors that Bitcoin is here to stay, and that the crypto world is far more than just a simple digital fad.

Bitcoin Market Trends in 2019

Given all of these changes, many people are wondering why Bitcoin has recently rallied in such a significant manner. A large portion of the optimism has been generated by the possibility that a Bitcoin ETF will be made available to the public. An ETF (or exchange-traded fund) can make it easier to speculate on the value of Bitcoin.

Over the last few years, one of the biggest problems people have had with investing in cryptocurrencies has been accessibility. When a Bitcoin ETF is used in financial trading, many of these problems can be removed for investors. Moreover, the creation of a Bitcoin ETF would go far in confirming the legitimacy of cryptocurrencies as they would be a more accepted feature of the market that is visible in trading exchanges.

Of course, a lot of this has to do with simple market sentiment. There has essentially been no difference in the concept of cryptocurrencies themselves. Rather, we can see that popular sentiment seems to be warming to Bitcoin, Litecoin, Ripple, and the other altcoin offerings. This is a natural sequence of events any time a new asset is introduced into the financial markets. As a result, it stands to reason that continued optimism will help Bitcoin continue to move higher well into next year. It is important for investors to remain cautious when trading (or speculating) in any cryptocurrency as there can be an incredible amount of volatility that is associated with their valuations.