The steady climb of Bitcoin‘s price is meeting resistance as it approaches $10,000. This is consistent with corrections after a price raise and short term gains sales. However, everyone is still careful not to call this a bull market as it is still very susceptible to volatility and negative media. Despite the collected rise of Bitcoin from $6800 on April 12th to $9,923 today (almost touching 10,000), it failed to break through and instead dropped $300 to an actual $9,639 at time of writing. This follows a pattern where it seems to pull back before breaching through a resistance line. Therefore, it is likely that it continue to climb and surpass the 10K mark despite predictions of a looming drop. Nevertheless, the buildup of attention, institutional investment, and project development is now impossible to ignore and/or stop.
The prevalent FUD which persisted for most of Q1 of 2018 has steadily receded. And a wave of optimism has created a small craze and FOMO that is driving prices up. In addition, the lack of recent scandals that plagued the crypto world is also temporarily absent. This is due to the strong stance the SCE has taken against fraudulent ICOs and their teams; subpoenas, arrests, and even sentencing have sent a clear message to would be scammers. The media attention has shifted instead towards a few projects that have recently come into the limelight like Mithril, Maker, Basis, Bitcoin Cash, Mobile coin, and Matrix, among others. The media also noticed the entrance of major venture capital investments into the market.
Private fund investment is the ‘dark energy’ quietly and steadily pushing Bitcoin prices up. Being careful not to make an overtly exposure, it continues to inject much needed money into the market cap. However, private funding is particular in its choices; it tends to prefer infrastructure and financial projects that promise to stabilize crypto currencies. For example, Basis and Mobile coin attempt to create a stable coin and imbed a wallet into major social networks. A stable coin that can serve for everyday transactions would be a major achievement and leap forward. And a coin that is easily distributed through the most widely used websites like Facebook and Twitter would make crypto currency accessible to the masses.
A number of ambitious developments are also adding to the investment craze. For example, the need to scale the Ethereum network has become a pressing need to keep the most widely used platform relevant. This has sparked a technological race involving major projects like Plasma Cash, Raiden, Liquidity Network, Loom Network, OmiseGo, sharding, and others. EOSIO 1.0 main net is launching in June; Ethos, the proverbial universal wallet already has a beta interface on smart phones, and blockchain-less networks and autonomous, IA-driven blockchains continue to gain track and investment. Also, future projects like NeuroChain and AuditChain will ensure the growth of the crypto market will continue.
All these factors combine to promote an optimistic future for cryptocurrencies; one filled with new discoveries and profits. Pantera Capital’s claim that the crypto market can reach $40 trillion USD is not entirely farfetched considering that the bulk of Wall Street hedge fund investments have yet to enter the market. With over $5.7 billion raised in ICOs this year alone, the credibility of the technology and projects behind crypto currencies is unquestionable. And investing is Bitcoin and altcoins is no longer considered a risk but more an opportunity. So, Bitcoin’s price is not likely to just hold but to exponentially increase over time.