Bitcoin Hits $15k, $16k, and $17k!
Bitcoin went from $11k to $14k yesterday and then from $15k to $17k (and $18k, $19k, and almost $20k) today. Wow! Unfortunately, this growth came at the expense of other coins. Also, this was probably one of the more volatile days in Bitcoin’s history.
In other words, Bitcoin had an epic two days in terms of price (with both ups and downs being epic. However, it did not take its friends (“altcoins“) along for the ride. Instead, the price of alts stagnated while Bitcoin strapped on the rocket boots and took off past the sun.
This is a great sign in general. It is a result of wider adoption (one gets this hint when they see Bitcoin’s price is higher on GDAX than it is on the more complex exchanges seasoned traders use; not that seasoned traders don’t also use GDAX, they do).
More adoption means a bigger market cap for Bitcoin and crypto. A bigger market cap, but not a bigger supply, means the price of crypto goes up (as you can see with Bitcoin right now). The effect, if sustained, will be felt in Bitcoin first. Then when things even out a bit, one can expect some (not all) alts to start playing catch up.
A new user will take their first dip in the crypto pool with Bitcoin in general. Then, after a while its on to other cryptos. Thus, there is a bit of a ripple effect that will likely come into play soon.
For now, although we can’t know what the future will bring, its a day to celebrate for anyone who held through this year’s ups and downs. Soon though, it’ll be time to start trading some of that Bitcoin for alts (which, when Bitcoin isn’t on an epic run, can see gains of 100% or more in a day).
Author: Thomas DeMichele
Thomas DeMichele has been working in the cryptocurrency information space since 2015 when CryptocurrencyFacts.com was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...
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How high can bitcoin go? $1m or beyond?
Thomas DeMicheleThe Author
No one really knows, but logically you look at the supply of Bitcoin (and other cryptocurrencies), the potential user base, and the potential market cap. Do that and you can come up with some pretty gnarly numbers. Ultimately though it’ll be “whatever people are willing to pay” and “whatever the market thinks is a fair price.”
You can buy a fraction of a Bitcoin, and you can buy other cryptos, so its hard to say how demand and supply and other market forces will work together to ultimately value Bitcoin when it reaches its high and then its steady average rate (at some point in the future its likely to steady out and trade within a range).
Fun stuff to think about, but one can only speculate, and we try not to speculate too much on this site unless its in an educational way.