During the 2018 bear market, the cryptoeconomy’s naysayers drummed many in the mainstream into thinking the bitcoin price was on a one-way track to becoming worthless.
However, in light of the genesis cryptocurrency’s recent marked resurgence, optimism generally is rising as it seems clearer than ever that bitcoin’s best days are yet to come.
That optimism is being driven by several notable milestones being hit. For example, the bitcoin price just reached its best valuation so far in 2019, having crossed $11,000 USD over the weekend. That latest surge helped BTC achieve a 15-month price high, as the coin hadn’t traded over $11,000 since last spring.
And that’s not all: the OG cryptocurrency has gained more than 160 percent in Q2 2019, making it the best quarter for “digital gold” since bitcoin jumped up 230 percent in Q4 2017, when the coin founded by Satoshi Nakamoto hit its all-time price high to date of $20,000. With a market capitalization over $195 billion at press time, bitcoin has indeed picked up steam after having entered this year’s second quarter just over the $4,000 mark.
Of course, BTC’s best stretch ever remains Q1 2013, when the cryptocurrency spiked up by more than 600 percent. Yet that spike didn’t come after widespread calls of bitcoin’s doom in mainstream media circles. Indeed, the difference between then and today is that the current bitcoin run-up comes after many pundits said the cryptocurrency would never see a five-digit price point again.
Now, bitcoin is only down 45 percent from its all-time price high. And the weekend surge means BTC is presently up 83 percent on the year and up 1,580 percent over the last five years.
The upward movement comes as another blow to those who have likened bitcoin’s popularity to the popularity of tulips during Tulip Mania, a speculative bubble that reached a fever pitch before abruptly bursting in the 17th century Dutch Republic. Tulip prices never recovered during that “mania,” but the bitcoin price has recovered after 2018 and several times before that.
$21,000 Bitcoin Incoming?
Interest is flowing around Bitcoin once more, with Google searches for the cryptocurrency acutely on the rise. That’s no surprise, as social media powerhouse Facebook announced their Libra crypto last week, which brought considerable attention in kind to BTC, the cryptoeconomy’s reigning asset.
The grand question for now, then: can the renewal of attention help power the bitcoin price to new heights?
For his part, Trace Mayer, a long-time Bitcoiner, analyst, and maestro of the Bitcoin Knowledge podcast, thinks it’s possible that the bitcoin price eclipses its previous all-time high before the curtains close on 2019.
Mayer noted as much during a June 24th tweet, in which he noted his “Mayer Multiple” model had the bitcoin price hitting $15,000 around September 2019 before reaching as high as $21,000 by year’s end. Mayer’s latest analysis also indicated BTC could cross over $30,000 next summer.
— Trace Mayer (@TraceMayer) June 24, 2019
Of course, the future is ultimately inscrutable, so there’s no certainty that comes along with such predictions. Rather, Mayer — and other analysts like him — have used the available data to make their best bets.
Yet with bitcoin putting up an impressive quarter and hitting its best valuation so far in 2019, the coin definitely has momentum going for it right now, and that momentum appears pointed upwards for the foreseeable future. Accordingly, Mayer and similarly optimistic traders would be far from totally surprised to see BTC crack through $20,000 this year — especially not with Bitcoin’s fresh halvening set to take place next spring.
That halvening will cut Bitcoin’s block reward from 12.5 BTC to 6.25 BTC, and as such, the routine event is widely considered to reinforce supply scarcity. Moreover, halvenings are also considered by some analysts to lead to acutely bullish price conditions.