The cryptocurrency market has received a boost in terms of value and market cap, with many attributing it to the surge in Bitcoin’s [BTC] prices. The world’s largest cryptocurrency was holding near the $8000 mark, with a total market cap of $140.11 billion, at press time.
Bitcoin’s relevance and repercussions were shown in a different light after Kevin Rooke, a Bitcoin enthusiast, compared the daily volumes settled using Bitcoin, with other traditional methods of transactions. Rooke claimed that Bitcoin settles more than $6 billion worth of transactions on a daily basis, a fantastic achievement for a virtual asset that is just over a decade old.
According to his analysis, Visa processes $30.3 billion worth of transactions, while MasterCard witnessed a daily transaction volume of $16.2 billion. Even though Bitcoin was third on the list, it was still ahead of market standards like American Express, which only had half of Bitcoin’s portfolio at $3.2 billion.
Another important takeaway from the analysis was that other cryptocurrency-focused companies were also entering the race to grab more market share. An example of this transition was the entry of the Jack Dorsey-led Square in the list, seeing a whopping $200 million being carried out in the form of transactions on the platform.
Many users interested in the space provided their own perspective to Rooke’s observation, with James Edwards, a cryptocurrency enthusiast, commenting,
“We’ve been here before. You’re well aware that these aren’t true transactions (ie, exchange for services rendered) but are exchange transactions, wallets moving etc. We’re all on the same team here, so why pander falsities?”
To this, Rooke replied,
“These are on-chain transactions. Exchange volume is not considered here.”
Bitcoin has received a lot of positive affirmation recently, with the latest person to praise the world’s largest cryptocurrency being Mark Yusko, CEO of Morgan Creek Digital Capital. He claimed,
“Morgan Creek had launched the cryptocurrency challenge back in December and there were not many takers. In a way that was good because BTC is up by more than a 100 percent right now, which is a much better hit rate than that of the S&P market. We will see that in the next 10 years, Bitcoin will outstrip even its current performance and maybe even more.”
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Bitcoin’s 2017 bull run was fueled by FOMO & hype; present run more fundamentally driven, claims report
Here we go again. Another bull run. Another “hype session” among investors as Bitcoin rises again. The cryptocurrency market is well known for its incredible shift in market sentiment, especially on the back of the world’s largest cryptocurrency surging again.
Bitcoin not only reached its 16-month high today, but it also recorded a growth of 15 percent over the week. This has contributed to several analysts and industry insiders speculating how high Bitcoin will go, with Anthony Pompliano claiming that the digital currency will soon cross its all-time-high valuation of nearly $20,000 and reach a massive $100,000 by 2021.
These predictions have definitely contributed to the coin’s growth as while the present surge is similar to the 2017 rally, it’s not driven by FOMO alone.
A recent comparison drawn out by the SFOX Volatility report compared the preset rally with the bull run of 2017.
The report suggested that the rally of 2017 was largely driven by ‘FOMO.’ When Bitcoin started climbing the valuation ladder, word got out and many investors discovered virtual assets for the first time. The rally of 2017 was mainly fostered through hype and speculation, since there were no major readings or past data to back the rising price.
The present run, while similar, is different in some aspects, one of them being that Bitcoin has a larger user base now than in 2017. While FOMO remains a major factor in driving the price up, the current surge is also backed by developments in the ecosystem, such as the entry of retail investors and huge financial/non-financial institutions joining the crypto-bandwagon.
Facebook’s crypto project, Libra, and Bitmain’s pursuit for a U.S IPO have validated Bitcoin and the rest of the cryptocurrency market, a luxury not available to the market of 2017. The present rally thus, is more mature than the 2017 rally as the present market’s fundamentals are more data-driven.
There remain some stark similarities in the trends however. For instance, in 2017, the push from $9000 to $11000 took place in a period of 7 days. The current push from around $8800 to $11000 came to be in 8 days.
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