PARIS, FRANCE – JANUARY 08: Bitcoin is now trading above $ 40k, here’s what ‘s different about the flow … [+]
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Bitcoin is now trading above $ 40k, another all-time high, strengthening the cryptocurrency’s stellar run from 2020. This next milestone comes a week after going to $ 30k. Here’s what’s different about this rally, compared to the 2017 run. In 2017, Bitcoin was also getting similar headlines for a sharp rise in value.
Review 2017
As a reminder, 2017 saw Bitcoin run big, not too different from what we see today and put together similar headlines with a mix of commitment and caution. However, there are differences in the direction of Bitcoin, the performance of other digital currencies and the uptake of Bitcoin among more mainstream financial platforms.
That’s not so extreme
As amazing as it may seem, the 2020-2021 run so far is not as real as what we saw in 2017. In 2017, Bitcoin rose from around $ 1k to $ 20k for around a return 20x over a short period of time, if you were able to make a sale at the top. In fact, Bitcoin fell sharply back from its 2017 peak.
This time Bitcoin made a low of around $ 5k during the low levels of spring 2020. Now at $ 40k, that is an 8x return over a race similar to the 2017 run. now twice the peak of 2017, the run up, albeit bare, is slightly lower than the current 2017.
Other crypto assets go down
2017 may have been more accurately defined as a cryptocurrency rally, not a Bitcoin rally. Many other digital currencies saw benefits, and many new projects such as Initial Coin Offerings (ICOn) were launched during the 2017 period, often with little short-term fanfare but no overall long-term success.
Yes, Bitcoin also ran up in 2017, but despite gains, it was often a relative laggard compared to some other assets such as Ethereum and Ripple, as well as several ICOs firing up in value.
Back in 2017, Bitcoin made up about half the total value of mainstream digital currencies, now that number is closer to 70% according to Trading View. There are still other digital currencies, but this time the role of Bitcoin is more mediocre. As Bitcoin sets more and more records, so could it become more valuable over time, according to Lindy’s influence.
A little more mainstream
Bitcoin is becoming more common. In 2017, the main way to go was through a special exchange dedicated to cryptocurrencies, such as Coinbase. There are now more mainstream channels, which are not directly based on support for digital currencies accepting Bitcoin. PayPal
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Of course, it is also worth remembering that the 2017 Bitcoin rally was followed by a decline of around 80% after the peak into 2018. Although, despite the volatility, Bitcoin seems to be becoming more stable in the investment outlook. This rally will get more attention from mainstream investors, and has a slightly different flavor to its 2017 run.