Bitcoin Price Jumps 5% on One-Year Anniversary of $20,000 Bull Run
The value of bitcoin rebounded sharply on Monday, shaking off a volatile weekend that dragged prices to new yearly lows. The broader cryptocurrency market quickly followed suit, as altcoins and tokens generated sizable gains over the last 24 hours.
The bitcoin price reached a high of $3,600 on Bitfinex, where it traded at a significant premium relative to other well-known exchanges. At the time of writing, BTC/USD was trading hands at $3,515, having gained 6.5%. The cryptocurrency was valued at less than $3,400 on Coinbase, Bitstamp, Bittrex and Gemini.
Aggregate data courtesy of CoinMarketCap show an average price of $3,436 for a gain of 5%. Volumes in the last 24 hours reached $4.4 billion after falling sharply throughout the weekend.
Bitcoin is now testing the high from Dec. 12, which is situated near $3,550. That level represents the latest in a series of lower highs stretching all the way back to the end of November.
At current values, bitcoin has a total market capitalization of $59.9 billion. The broader cryptocurrency market was worth $109.1 billion, having defended the $100 billion level over the weekend.
It was one year ago today that bitcoin reached its latest and most famous all-time high near $20,000. At this time last year, the cryptocurrency market was surging on expectations of rising institutional adoption and an ICO gold rush that attracted millions of dollars to blockchain startups. The market would go on to set new record highs in January, this time without bitcoin, as altcoins and tokens generated the bulk of bullish activity. The total market capitalization peaked near $840 billion before the euphoria faced and bearish forces took over.
The fallout from bitcoin’s record run has led to concern about the future of cryptocurrencies. Hacked previously covered the prospect of a long-awaited mass extinction event of altcoins and tokens, many of which entered the market with nothing more than a whitepaper. During the height of the bullish fervor, Ethereum’s Vitalik Buterin acknowledged that 90% of the projects currently listed on CoinMarketCap would eventually go to zero. In his view, this would lead to a consolidation of sorts, with the next wave of ICOs churning out higher quality projects.
One of the major themes of 2019 will be the evolution of security token offerings and the exchanges that list them. Progress on platforms like tZero could serve as a bellwether for the growth and viability of this market.
For bitcoin, the major question mark heading into the new year is whether the U.S. Securities and Exchange Commission will grant fund issuers the right to launch a crypto-backed exchange traded fund (ETF). The regulator is expected to rule on the VanEck SolidX Bitcoin Fund, a highly-touted ETF, by the end of February.
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.
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