When approaching the peak of the highest price of Bitcoin at the end of 2017 at a price of almost US $ 20,000 per Bitcoin (BTC), many analysts predict a “price bubble” similar to the dotcom bubble in the 2000s.
Apparently, the bubble came true and broke in 2018. Only shortly after the price reached the peak and BTC fell 80% from the peak price to US $ 3,100 at the end of 2018.
In the middle of 2019, the BTC will rally again to the level of US $ 14,000 per BTC.
Will this rally trend re-form the Bitcoin price bubble like in the past?
Could the BTC price bubble burst again in 2019? Or does it become a snowball that is getting more and more valuable?
Bitcoin Bubble
A financial instrument that was initially stagnant and not even excited then suddenly the price rose and shot in a short time, this is called a price bubble.
Furthermore, the price increase was followed by a significant price decline, a decline of more than 50% from the highest price in a short time as well.
This phenomenon is not new in the history of the financial world.
To identify the Bitcoin bubble is not easy. The character is very volatile even in a span of 4 hours can go up and down 6-11%. You can imagine what the daily or weekly fluctuations are.
Bitcoin is suddenly soared
Bitcoin suddenly soared this week, with the price of bitcoin rising more than 20% in the last seven days. Additionally, it jumped more than $ 500 per bitcoin in a matter of minutes overnight, only to go back down.
According to forbes.com, the US-China trade war and the weakening of the yuan are global economic turmoil. The situation had affected the recent rise in the price of Bitcoin.
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