These charts show how quickly bitcoin is growing

Bitcoin
Spread the love
Bitcoin

As bitcoin soars to all-time highs, the pace of gains is rapidly picking up speed.

For example, it took well over 1,000 days for each leg of bitcoin’s climb from a few cents to $1,000, and from $1,000 to $2,000. But since bitcoin topped $2,000 for the first time this May, the digital currency has added each incremental $1,000 to its price in less than 100 days.

Each colored band in the chart below shows how long it took for bitcoin to climb from one psychologically key level to the other. The latest climb from $4,000 to $5,000 only took about 60 days.

Bitcoin is gaining $1,000 at a faster and faster pace

Source: CNBC analysis of CoinDesk data

Bitcoin hit a record high of $5,856.10 Friday, a sixfold increase for the year, according to CoinDesk. The digital currency now has a market capitalization of more than $90 billion.

Many analysts attribute bitcoin’s gains this year to a surge of interest from institutional investors, who are betting on the digital currency’s future as a store of value or means of payment.

One way to gauge new investor interest is to look at the growth of the “wallets” that digital currency investors use to store their coins. The number of wallets from major wallet company Blockchain.info has nearly doubled to 17.5 million on Thursday from about 9.2 million this time last year.

Another indication that new money is flowing into bitcoin is the relatively muted performance of other digital currencies this week, Chris Burniske, author of “Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond,” pointed out.”The secular bull trend continues.”

In the past, investors have sold other digital currencies and used the profits to buy bitcoin.

Market capitalization of all digital currencies except bitcoin (last 7 days)

That said, some other digital currency watchers say the rapid price gains and surge of interest in digital currencies reflects bubble-like behavior.

“The cryptocurrency craze represents some of the most intense financial speculation the world has ever seen,” Elliott Prechter of The Elliott Wave Theorist newsletter, told CNBC. “When it reverses, the significantly higher transaction volume associated with bear markets will stall crypto networks, making it nearly impossible for investors to exit while prices collapses. It will be pandemonium.”

No Comments

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Bitcoin
Bitcoin Price Faces Third Monthly Loss of 2019
Spread the love

Spread the love Bitcoin is on track to test $9,000, having dived out of a narrowing price range earlier this week. The cryptocurrency is likely to end August on a negative note, having suffered losses in July and January. BTC may suffer a deeper price drop over the next few months, possibly …

Bitcoin
Satoshi Nakamoto: ‘Bitcoin dips below $10K — again :(’
Spread the love

Spread the loveWelcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Albert Einstein used to say: Let’s whip up a knowledge omelette! Bitcoin Price We closed the day, August 28 2019, at a price …

Bitcoin
Bitcoin Eyes $9K Price Support After Drop to One-Month Lows
Spread the love

Spread the loveBitcoin (BTC) could drop to $9,000 in the next 24 hours, having strengthened the short-term bearish case with a drop to one-month lows earlier today. The top cryptocurrency by market value fell to $9,320 at 07:36 UTC today, the lowest level since July 28, according to Bitstamp data. …