It’s been a fascinating start to 2018 for Bitcoin and other cryptocurrencies. The end of 2017 saw a massive bull run that carried with it many of the major ‘altcoins’. Ripple surged after (incorrect) rumours surfaced that it was going to be imminently added to US-based exchange Coinbase. Litecoin surged after its founder Charlie Lee appeared on CNBC programs Squawk Box and The Glenn Beck Show. Bitcoin also surged, though the reasons weren’t immediately clear, with some believing it was because large-scale investors were trying to maximize their profits before the Bitcoin Futures markets came online.
The beginning of 2018 saw Bitcoin come crashing down, from a high of almost USD $20,000 to a low of just over USD $6,000, a drop of more than 65%. The global market cap of all cryptocurrencies also declined from a high of USD $830 billion to a low of just under USD $290 billion on February 6th according to website Coin Market Cap. Many believed the drop in Bitcoin was a result of investors shorting Bitcoin after entering the futures markets, while some pointed to remarks made by Chinese officials which were interpreted as a potential ban on crypto trading in the country.
But Bitcoin and other cryptocurrencies would once again show their resilience and recovered in mid-February. Bitcoin found its footing on February 17, reaching a monthly high of just over USD $11,000. So too did the global market cap of all cryptocurrencies, breaching $510 billion just a week earlier.
That’s brought back the appeal for investors who want to buy cryptocurrency in Canada too.
Many believed this bull run was due to statements made last week by European Central Bank head Mario Draghi. Despite calling cryptocurrencies a “Ponzi scheme,” speculators latched on to his other comment that “it’s not the ECB’s responsibility” to regulate cryptocurrencies. Others pointed to a hearing last week at the United States Senate Banking Committee, where US Commodity Futures Trading Commission head Christopher Giancarlo refused to call Bitcoin an outright security. After being asked by Senator Mike Rounds whether Bitcoin was a commodity, security, or a bit of both, the chairman indicated that it manifested characteristics of “multiple asset classes” and sometimes appeared to be a commodity, akin to gold.
Ethereum has also been caught by the recent bull run after having its market cap decline. Now, much of the volume on the network is driven by “crypto collectable” games such as CryptoKitties and Etherbots.
For Canadians who want to start trading crypto today, it’s never been easier to enter the market. Canadian cryptocurrency exchange Bitbuy has made cryptocurrency more accessible to Canadian buyers by allowing them to buy Bitcoin and other major coins directly with Canadian funds. When you start trading on Bitbuy, you can also earn money when your friends sign up through their referral program.
Some industry insiders believe the price of Bitcoin could jump to over $200,000 in the near term. Bobby Lee, the CEO of China’s first Bitcoin exchange, BTCC, believes the coin could reach above $1 million over the next 20 years. With insiders predicting changes like this, you need a source for cryptocurrency news to stay on top of big price movements and their causes. If you don’t know already, it’s time to learn how to buy Bitcoin and get into the market before cryptocurrency comes into its own.
What will happen next is anyone’s guess; is this the set up to a further bull run like Lee suggests, or is it a trap that will once again lead Bitcoin down to $6,000 or below? One thing is certain: you better buckle up, because what’s coming next for Bitcoin and other cryptocurrencies will surely be intriguing.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Harrison Jordan is a graduate of Osgoode Hall Law School from Toronto, Canada. He enjoys reading and writing about cryptocurrencies and blockchain technologies.
Follow him on twitter @harjord