For the past few days seems that Bitcoin is rising continuously. Sure there were times where it look like Bitcoin will not break through certain barriers but it did. And now it has finally reached USD 47k yet again. I am not saying that I have a crystal ball or anything but it is more or less expected right? With the number of financial institutions holding on Bitcoin, it is just going to be a matter of time before BTC start rising again. Since the huge dip in the crypto market in late May, many have kept on claiming that BTC will collapse and will never recover. But even with bad news looming (that ridiculous crypto tax thing), seems like BTC is defying all odds and has been rising back to the previous high. I would like to also highlight that during the previous crash, although BTC dropped quite hard it did not drop as much as many of the altcoins. The lowest it ever went was USD 29k. If we were to look at Ethereum or the other coins/tokens, some went down even more significantly. I have seen some higher cap coins/tokens that had more than a quarter of their value slashed.
No I am not a Bitcoin maximalists. Far from that. I am currently not holding BTC in any significant amounts. But I would like to reiterate that most investors and traders still feel that Bitcoin is important in the cryptosphere. And they tend to take the direction of BTC when getting a feel of the market – whether it is bull or bear. In most cases, when BTC rises, the entire crypto market will rise with it. Yes at the moment, it seems that Ethereum is the driving force for this push (with their very successful London hard fork) but overall I still think Bitcoin will be the main driving force. Yes I know that even institutions are starting to hold Ethereum in their portfolios but I think it should still be significantly less than the amount of BTC. However I will leave the fight between Bitcoin and Ethereum to another article. It will be a very long drawn out piece if you ask me.
You should also check out my article on why Bitcoin is still relevant here. Although it was written a few months ago, it should be a rather good read for those who just came into the cryptosphere. And for those asking when I will get back into BTC, I would say not at the moment. Getting badly burnt when I first started investing will leave a permanent scar that is nearly impossible to get rid off. And there are plenty of altcoins which I think have lots of potential. With my limited funds, I don’t think I will be going into BTC soon.