The oldest decentralized digital currency keeps on bull running with price turning upwards once again today to reach a new high of $4,492.
It’s market cap is now near $74 billion with volumes somewhat lower today at around $2.2 billion, slightly down from their all-time high of $3 billion.
But liquidity is in short supply on some exchanges, like Bitfinex – the world’s second biggest bitcoin exchange – where small market buys appear to be moving the price considerably.
Limit buy and limit sell orders of 0 point something appear common, from our observation, with little apparent support or resistance in either direction.
Creating very volatile and fast price movements, with bitcoin’s price falling some $500 yesterday, then suddenly it just rose by $300 in seconds.
That may be because it seems most are just holding, neither selling nor buying, but the share of those that do either of the latter seems to have considerable effect on the price’s direction.
There’s clearly a heard mentality in play too, especially in this market where everyone can take part. So when price rises many expect it to rise more, buying. But if it turns, they wonder whether the music has stopped.
That makes it exciting and fun, but also one of the easiest way for you to lose money. Which is why the meme hodl has risen because most will lose day-trading.
So the question is where is this going in a longer time frame of weeks or maybe even months.
We have to make it clear we don’t know, and are just speculating, but as far as fundamentals are concerned the network will now upgrade through segregated witnesses (segwit) to nearly double transaction capacity.
That may give it some respite and is a fairly good reason for some of the price rise, but the real reason is probably because the rise of ethereum and blockchain propelled bitcoin to a household name because both of those technologies are explained in reference to bitcoin.
So now everyone knows about it and clearly some want some of it. Which may mean we have reached a tipping point as this space makes its debut to the world.
So everyone is partying and celebrating as we all experience a boom of the kind never seen before in this space. Because the picture has become just that much bigger and includes not just finance, but every industry as a new world is envisioned of a fourth industrial revolution.