Bitcoin has gone parabolic again, but the factors fuelling its rise make for much more enjoyable reading than in 2017.
Bitcoin (BTC) rising above $10,000, $11,000 and $12,000 surprised everyone in 2019 – but the takeaways from this year’s surge makes for unbelievable reading.
As Cointelegraph reported, this year’s bitcoin price action has little in common with 2017 – the last time a parabolic advance occurred. Instead, the current cycle is giving investors serious reasons to celebrate.
1. Bitcoin Already Quadrupled From its Bear Market ‘Floor’
Since November 2018, when turbulence from the bitcoin cash (BCH) hard fork hit markets, BTC/USD has recovered three times over.
At the time, the pair hit its lowest point in a bear market which had lasted 11 months – around $3,130. Just seven months later, bitcoin is topping out at $12,800.
The past three months – since the ‘major’ phase of the bull run began – has seen BTC/USD gain an astonishing $9,000.
2. $11,000 Per Bitcoin is ‘Fairly Valued’
Parabolic price moves tend to trigger worry as well as rejoicing. According to one analyst, however, even despite the $9,000 leg-up, Bitcoin in fact remains appropriately priced.
According to Bloomberg journalist Tracy Alloway, creator of a bitcoin price index based on – of all things – avocados, current BTC/USD levels show appropriate correlation.
Bitcoin has shared surprisingly similar behavior with Mexican Hass avocados during a mutual bear market.
“Bitcoin remains fairly valued according to my avocado-based pricing model, even after rising past $11,000,” Alloway summarized.
3. Bitcoin and Avocados Soar As Dollar Crashes Under 10,000 Satoshis
If roughly the same number of avocados will net you a bitcoin, the same certainly cannot be said about the US dollar.
A chart currently circulating on social media capture the moment when 1 USD no longer corresponded to 10,000 satoshis, bitcoin’s smallest increment.
In January this year, $1 could have netted almost 30,000 satoshis.
4. The ‘Kimchi Premium’ Is At $13,000
As the bull run continues, questions are being asked about its source. As Cointelegraph previously reported, Asian markets appear particularly actively involved in Bitcoin this year, reversing a trend from 2018.
Among these, the so-called ‘Kimchi Premium’ – a phenomenon where South Korean traders pay more for bitcoin in fiat terms – remains conspicuous this week.
According to exchange data, the price of bitcoin on major South Korean platforms has already passed $13,000.
5. Bitcoin’s Hash Rate Is Stronger And More Secure Than Ever
As previously mentioned, strong bitcoin network fundamentals provided the backdrop to sustained price gains.
Among these, the total network hash rate continues breaking records on an almost daily basis in June.
In the words of Hodlonaut, the Twitter user who returned to the platform amid a legal battle with infamous self-proclaimed Bitcoin creator, Craig Wright, bitcoin “won” after reversing its hash rate downturn.
6. Will Bitcoin Continue to Surprise the Market?
Given the speed of its gains, the future for BTC/USD remains uncertain. According to one popular analyst Filb Filb, the historic trend should ultimately spark a price correction to around $9,500.
First, however, markets could easily run to $16,000 or even higher.
He said:
“This would mean that although bitcoin is in the final leg of this run, it could still top out at 16k before a correction to somewhere around $9.5k.”
“This would meet the criteria of surprising the market, which is what bitcoin does best,” he adds.
