Bitcoins doesn't appear to be slowing down in popularity
Bitcoin’s prices have skyrocketed in the month of May appreciating nearly 20% and surpassing $500 per token for the first time in 2 years. Despite members of the crypto community criticizing the pay reduction of professional mining services, investors from across the nation are yet again recognizing Bitcoin’s potential. Data research indicates that this is only the beginning and analysts are staying optimistic as we move towards Q3 of 2016.
Although this increase has been gaining a lot of coverage in the media, the Coindesk USD Bitcoin Price Index (BPI) shows that this is the smallest gain of the year. In fact, the most recent increase was a boost of 18.35% in comparison to February’s gain of 18.92%. Nevertheless, May was a significant month among Bitcoin traders with long-short ratios reaching close to 90% and confidence levels surpassing 80% every day this month (besides May 31st). On the other hand, volatility barely scratched the surface until the end of May moving from its low of less than 1.28% reaching its peak of 2.46%. A pattern similar to its appreciation, this wasn’t the best month for volatility but excelled at the beginning of the year when January finished strong with a whopping 4.84%. This trend of growth has experts talking and seems to be going in multiple directions.
Chairman of cryptocurrency investment manager EAM, Tim Enneking, believes that this recent upsurge has largely been contributed by Bitcoin’s protege Etherium and its digital currency called “ether.” The Bitcoin Exchange had a remarkable amount of activity adding more value into the network and impacting the crypto community as a whole. However, Whaleclub’s director of operations, Petar Zivkovski, shared that both ether and bitcoin were directly opposing each other in the month of May. Zivkovski spoke on the trend saying, “This indicates that the market has positioned both currencies as pure competitors – should one asset be seen as succeeding, the other is seen as failing.” Finally, the chief investment officer of Global Advisors pointed out causative factors such as Bitcoin’s recent move of decreasing the payout of miners saying it has had a major impact and will cause a ripple effect throughout the industry’s landscape. Not to mention the bankruptcy of one of America’s leading mining product supplier, KnC, and how he firmly believes that this prediction is more than just a hunch but unavoidable. However, many crypto specialists have high hopes for the remainder of June.
The examiner and blockchain merchandise lead at ARK invest, Chris Burniske, said to Coindesk, “Since we ended May with a trailing 30-day daily volatility of 2.44%, bitcoin is still less volatile than it was at the beginning of the year, but it will be really interesting to see how it behaves going into the halving.” On the other hand, Adam White of Coindesk said that liquidity will play a major role in determining the fate of Bitcoin. If Bitcoin continues with this momentum, this would significantly improve its liquidity. Chief strategy officer of OKCoin, Jack Liu, is convinced that it is up to Bitcoin’s ability to effectively utilize the blockchain that will dictate the future of the early crypto pioneer.
What do you guys think about Bitcoin’s recent price surge? Do they have what it takes to last in the long run? Send us your insight and we would love to hear it!
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