Crypto is making dreams come true. That is for all who believed in them. Because prices, market caps and attention are surpassing all-time highs (ATH). In this article, we explore Bitcoin’s recent price surge, its performance against depreciating fiat currencies, and the general public interest in the cryptocurrency space. What could this mean?
Bitcoin’s Path to Surpassing ATH after ATH
A bullish outlook on Bitcoin is difficult to deny, as we expect Bitcoin’s rise to triple digits after it broke its previous record highs of $69k, $70k and now $73k.
The digital gold follows a similar trajectory to that of gold, after the ETF approvals of 10 major traditional finance players. It has become legitimate and is becoming an increasingly attractive option for investors. Additionally, the anticipation surrounding the Bitcoin halving contributes to this optimistic forecast as well.
Crypto Market Cap All Time High
The cryptocurrency market also knows a rise and all-time high of its own, where almost 3 trillion dollars keeps the markets going. This is a remarkable growth over the years and can be credited to the consistent capital inflow into the newly launched spot ETFs, but also increased interest from the public.
Increasing Public Interest in Crypto
Public interest in cryptocurrencies is surging, as evidenced by Coinbase’s application climbing into the top 100 apps on the Apple App Store for the first time since February 2022. The Coinbase Wallet app has also seen a significant rise in popularity, jumping from #495 to #151 in a single week. Live updates on its position can be found here.
Furthermore, Google searches for Bitcoin have spiked, indicating a heightened curiosity and potential new entrants finding their way to the cryptocurrency market. In comparison to all-time high levels, these numbers don’t come near…yet.
Analysis of Previous Bitcoin ATH Price Movement
When we look back, we can use data from the past to make a kind of prediction for the future. Back in the day, we see that the bullish run started even before 2021 when cryptocurrencies like Bitcoin & Altcoins demonstrated an upward trend together towards the end of 2020. While Bitcoin was closing in on its all-time best at $19,736.09 on November 25th, it found resistance and moved back to around $15,732. A sharp drop, cleaning the leveraged traders and resetting overly bullish sentiment.
Interestingly, BTC and Ether didn’t change their bullish course for some time and held the price below $20,000, we then waited eagerly on each new day, but the wait was long.
Then on December 16th, 2020, Bitcoin slightly went over its previous $20,000 ATH and altcoins saw their liquidity dry up, what we also call a “capital rotation” into Bitcoin which then exploded in a rally that lasted for about three more weeks consecutively.
Bitcoin found its first stop around $40,000 on January 8th, 2021 and Altcoins saw their liquidity back injected and closed their gap.
The ‘super cycle’, in turn, got further ignited by an announcement on the 8th of February, regarding the purchase of $1.5 billion worth of Bitcoins by Tesla, which fueled a rally culminating in a new all-time high of a whopping $58,000 and drove the cryptocurrency market upward for the following weeks.
From mid-March 2021 to the beginning of April 2021, Bitcoin along with Ethereum and many altcoins started to end up becoming marketplayers. Everybody was rich and happy until the music stopped. On May 12th, the beginning of the broader crypto sell-off or “nuke” happened.
In short; when BTC flys, altcoins go down and later play catch-up. We are curious what will happen this time, would it be all over again or will this time be different.
Performing Against Weakening Fiat Currencies
The rise of bitcoin is not all because people are waking up. As the dollar pair was one of the last that has seen all time highs, other world currencies are collapsing when measured against bitcoin.
We see that bitcoin has broken ATHs in more than 14 countries before it did against the dollar, Euroland was first for example.
This highlights Bitcoin’s potential as a hedge against inflation and a store of value, especially in countries where the national currency is losing value.
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