If the so-called cryptosciences played a secondary role in the past few years, these, especially bitcoin, have become more and more the focus. While in the middle of 2015 a bitcoin was still traded for $ 250, the price has steadily increased since then - most recently, the upward movement accelerated exponentially. Last Wednesday (26.07.2017), the price for a bitcoin reached about $ 2,543, a ten-fold increase in less than two years. The largest upward movement took place within less than two months. This development suggests a clear bubble formation.
For a long time the Bitcoin is no longer only bought, thus to make payments on the Internet. Meanwhile, speculators are also investing enormous sums in the crypt diet. In this way, they expect enormous profits in the short and long term. Currently, the market capitalization of bitcoin is about 40 billion US dollars. Two months ago, it was only $ 14 billion. Two years ago just 4 billion US dollars.
Large investors have already entered the market and see long-term potential. Bitcoin, for example, was officially approved as a means of payment in Japan, and an ETF for major investors in the US is to be launched, which would once again be able to flush large volumes into the market and drive the price further into new heights. It remains to be seen how much this increase will be and whether it will actually take place.
In 2013, the price of a bitcoin rose from $ 100 to $ 1,000, but then fell again a year and a half. Only at $ 200 did a floor develop and in the summer of 2015 it went leisurely up again. The price has now grown tenfold. In the medium term, therefore, a bitcoin crash as well as a price drop of up to 80% are possible.
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The bubble is punched - The end of the rally?
On 25.05, the Bitcoin suddenly began to crashen after a steep upward trend was broken. Speculative "Stop Loss Orders" were triggered by an avalanche, so the Bitcoin lost $ 500 within two hours and fell from $ 2,737 to $ 2,224. This day may mark the bursting of the bubble on the cryptic market. These developments have already been observed three times in the past. Until the disillusion finally sets in, some time would pass - but high losses are then pre-programmed.
Whether the developments shown are indicative of the fact that the bitcoin bubble has already been punctured and Bitcoin has thus already reached its pre-market in the past months, remains to be seen.
We assume that further capital will initially flow into the market and the price will rise somewhat further. It is also conceivable that future declines will be significantly smaller.