By CCN: According to eToro senior market analyst Mati Greenspan, bitcoin is in amidst a parabolic bull cycle and is on track to sustain its strong momentum over the medium to long term.
Since January, within less than six months, the bitcoin price has increased by nearly 100 percent against the U.S. dollar.
Still, despite its large short-term rally, Greenspan noted that the dominant cryptocurrency is only at the start of a bigger cycle that may lead to new highs for the asset.
WHY INDUSTRY EXECUTIVES ARE SO OPTIMISTIC IN BITCOIN
In December 2018, the bitcoin price dropped to its lowest yearly point at $3,150. At the time, even though the industry had demonstrated significant progress in improving the infrastructure supporting the asset class, the sentiment around the market was quite gloomy.
From January to late March, the bitcoin price showed little volatility in a tight range between $3,000 to $4,000, leading traders to become concerned about the possibility of the asset plunging by another 50 percent following an extended period of stability.
In the fourth quarter of 2018, when the bitcoin price remained stable for more than 3 months at the mid-$6,000 level, it fell by nearly half to $3,150.
However, bitcoin showed a strong recovery backed by large volume on regulated platforms like the CME bitcoin futures market and Grayscale’s Bitcoin Investment Trust (GBTC), leading the crypto market to rebound in a short time frame.