By Ekin Genç
3 min read
As Wall Street broke fresh records, Bitcoin’s price dipped below $16,000 today before recovering. Bitcoin’s current price is $15,958, having fallen by 1.25% in the past 24 hours.
Bitcoin’s price has been on an upward spiral all this week, rising from $15,000 on Sunday to $16,000 on Thursday. Bitcoin peaked at $16,463.18 yesterday, its highest price since 2018. Bitcoin had only been that high for 12 days in its entire history, reported crypto analytics site Messari.
But Bitcoin fell a touch below $16,000 today, stoking concerns that Bitcoin’s bull run has peaked. Others think that the Bitcoin market is headed for something similar to the 2017 bull run, when Bitcoin topped out at $20,000 in December before collapsing in January 2018. Others think that Bitcoin’s already topped.
But the honest truth? Nobody knows.
Coinciding with Bitcoin’s weekend stagnancy is the rise of Wall Street. The stock market ended the week with a rally following the Covid-19 vaccine breakthrough this week. Even though Covid-19 cases continue to soar, particularly in the US, the anticipation that the mass rollout of the Covid-19 vaccine may well end the pandemic has boosted moods about the near-future prospects.
But the vaccine hopes weren’t all to account for the stocks hitting record highs this week. The Biden presidency (despite what Trump might believe) continues to benefit the investor confidence, and with all this good news, stocks hit the highest since June.
The same happened last week. Wall Street performed well on Friday, closed, and then Bitcoin stagnated. And then Joe Biden won the US General Election and Bitcoin dipped slightly, before rebounding and then increasing throughout the following week.
Bitcoin’s been on an upward trend since the start of October when it was worth about $10,500. Its peak on Friday means that it has increased by $6,000 in about a month. That is, for reference, more than the entire price of a Bitcoin in March, when markets tumbled amid the coronavirus-inspired crash.
Some people think that the Bitcoin market is headed for something similar to the 2017 bull run, when Bitcoin topped out at $20,000 in December before collapsing in January 2018. Others think that Bitcoin’s already topped. But the honest truth? Nobody knows.
But at least, one thing is clear: as recent research shows, Bitcoin yields better long-term returns on investment, outperforming conventional assets like stocks and gold.
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