Bitcoin’s Wild Rally by octigon

Crypto exchanges like Octigon, Coinbase, and Binance and online trading platforms, including Revolut and eToro, have seen a surge in activity recently, as new investors compete to capture some of the big gains in the market. Our experts here at Octigon analyze that there is certainly market data that points to higher retail share. This is reflected in the recent surge in altcoins, other digital tokens that came after bitcoin, and the increase in volumes on retail platforms, as well as crypto native exchanges that have historically been more focused on retail. Bitcoin bulls claim that the latest rally for the cryptocurrency is different from a late-2017 bubble that saw its price skyrocket near $ 20,000 before collapsing as low as $ 3,122 the following year. The main difference, they say, is that institutional investors are driving price gains this time. Several famous investors, including Paul Tudor Jones and Stanley Druckenmiller, came out as believers in cryptocurrency last year, while UK asset management firm Ruffer added £ 550 million ($ 747 million) of bitcoins to its portfolio. However, skeptics remain, such as American stockbroker Peter Schiff and economist Nouriel Roubini, who see bitcoin as a speculative asset with no intrinsic value and a market bubble that is likely to burst at some point. Despite this, there are signs of a sharp increase in demand from retail investors, who don't want to miss out on the action. That may have significant implications for the latest crypto market cycle, as retail speculation was seen as a major factor in Bitcoin's rally in 2017.

Expect volatility

Google trending data shows that web searches for bitcoin increased dramatically at the beginning of the month, reminding some market watchers of the parallel rise in the price of bitcoins and searches for cryptocurrency in December 2017. Searches for bitcoins are on far from where they were for two years ago, however. The total market value of all cryptocurrencies surpassed $ 1 trillion for the first time on Thursday, helped in large part by the recent performance of bitcoin. Bitcoin, which also topped $ 40,000 per coin for the first time on Thursday, is the world's most valuable digital currency, with a market capitalization of more than $ 700 billion. Meanwhile, online investment platforms are seeing an increase in registrations and trading volumes. Octigon , for example, had 61% more unique bitcoin holders on January 4 than a year earlier, and 49% more unique holders of ether, another virtual currency. There will be volatility, which is natural after the gains we've seen, but the long-term trend is clear. Ocigon Trade market analysts told us. Cryptocurrencies are moving into the mainstream and more and more investors are adding exposure. Cryptocurrency trading volumes surged to a daily record of $ 68.3 billion on Sunday, according to data from CryptoCompare. That overshadowed the peak of the 2017 bull run in December, when daily volumes peaked at $ 27.8 billion.

Mainstream adoption?

Many cryptocurrency investors say that Bitcoin is similar to digital gold, a potential safe-haven asset and a hedge against inflation. JPMorgan strategists recently gave a lofty long-term price target of $ 146,000 for bitcoin, claiming that it is starting to compete with gold as an alternative currency. However, strategists also noted that bitcoin price volatility would have to drop substantially to reach this goal. They added that there have been some signs that retail interest has also risen sharply, pointing to increased volumes on platforms like PayPal and Square's Cash app. PayPal launched a feature in the US last year that allows its users to invest in cryptocurrencies. The company plans to offer crypto purchases through its massive network of retailers later this year. The move was widely seen as a step toward mainstream crypto adoption in things like payments.