Bitcoin Price Claws Back Above $3,900; Apple Co-Founder Says BTC Has Seen “Massive Value Creation”

Bitcoin’s price saw further stability on Wednesday and was poised to end a brutal six-month losing streak, all signs that the worst of the bear market had passed. Apple co-founder Steve Wozniak told a Bloomberg event that he stood by his prior comments about bitcoin one day becoming the world’s reserve currency.

BTC/USD Update

The bitcoin price clawed back above $3,900 through the early part of trading Wednesday. The virtual currency rose 0.6% on Bitfinex to reach $3,919.50. It had achieved an earlier high of $3,933.30.

Looking to the hourly chart, underlying momentum has improved over the past 48 hours after bitcoin fell into oversold territory on Sunday. The price is back above the 50-period moving average, which has offered some resistance during the latest rally attempt.

Aggregate market information from CoinMarketCap shows an average BTC/USD price of $3,887.45, which reflects a gain of 0.9%.

Trade volumes have declined in the last 24 hours but remain well above the recent average. Daily turnover exceeded $7.6 billion on virtual exchanges, with BitMEX accounting for 8.7% of the volume. Spot markets accounted for the remainder.

The Bitcoin network is currently valued at $68.3 billion, giving BTC  a dominance rate of 51.9% relative to the broader market.

Steve Wozniak Praises Bitcoin

Apple co-founder and bitcoin advocate Steve Wozniak still believes that cryptocurrencies are changing the world and that BTC will one day become the global reserve currency. In a recent talk hosted by Bloomberg on Tuesday, Wozniak said bitcoin has seen “massive value creation” that is unlikely to be upended by the year-long bear market.

“I’m not sure I can buy that we’ve seen massive value destruction but I think we’ve seen massive value creation,” he said, adding that “psychology will often drive markets…”

Wozniak’s views mirror those of Jack Dorsey, a long-term bitcoin advocate who believes virtual currencies will power the internet of the future. Dorsey, who founded Twitter and mobile payments giant Square, recently told the Joe Rogan Experience that bitcoin will “probably” become the internet’s native currency.

Related: Crypto Adoption is Spreading Like Wildfire; Where is Bitcoin Headed?

Crypto adoption is certainly spreading, and the last half of the bear market has once again seen the rise of the so-called bitcoin maximalist. A bitcoin maximalist is someone who believes the original blockchain will reign supreme in the long run regardless of the issues it faces today.

This trend was recently highlighted by Grayscale, the cryptocurrency asset manager most famous for the GBTC Bitcoin Trust. The manager’s bitcoin fund brought in an average of $2 million per week in the fourth quarter, well above the average weekly investment for all cryptocurrencies, which stood at just $300,000.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi