Bitcoin Hits 17-Month High; Is This Mobile Payments Tool Back?

June 27, 2019         By: Steven Anderson

Remember when, every so often, we’d take a look at bitcoin prices and marvel that they were as high up as they were? Then we watched bitcoin go into a free-fall and dash the hopes and dreams of all those folks who mortgaged their houses to buy bitcoin. Hopefully, those folks held on to their bitcoin instead of figuring they should cut their losses, because bitcoin is back, and in a big way, gaining almost 20 percent in one night.

As of this writing, Bitcoin has backed off its highs somewhat, going from $12,919 in early-morning trades to $12,838.40. Bitcoin hasn’t seen these kinds of prices since the start of the price collapse back in January 2018 that took a lot of cryptocurrencies down with it. In fact, reports note that bitcoin prices are up 230 percent just since the start of this year.

This particular rising tide lifted many other boats, reports noted, as Ethereum saw a nine percent hike as a result, and Ripple managed to get back to $0.48 on the strength of a three percent gain.

The biggest cause of this gain seems to be institutional interest; this includes the obvious gain of Facebook’s upcoming Libra release. Others, meanwhile, view it as a consequence of the still-ongoing trade war between the US and China. Plus, there’s also the issue of a “halvening” poised to happen in 2020, in which bitcoin miners get only half the reward they’re currently getting.

There’s one other segment only occasionally heard from, and that’s the idea that this is the start of another bitcoin bubble. While this is a somewhat pessimistic look at things, the idea that bitcoin could be falling prey to the same effect that it was commonly considered to have generated for other cryptocurrencies back in the 2016-2017 era, roughly, isn’t all that surprising. Other support for this notion includes the point that among small bitcoin traders—those with fewer than 25 contracts—longs beat shorts by four to one.

So for those who advised HODLing back in 2018, you may feel a sense of vindication. The prices did come back. But will they stay back? That’s a point only time will tell.