As of Saturday, Bitcoin investors, owners, and enthusiasts were enjoying a surging rally which saw the digital asset reach the $7,500 mark. Based on Coinbase numbers, the rally cooled off a bit, as BTC fell back below $7,000 as of Sunday (May 12). Still, many cryptocurrency proponents may have been pleasantly surprised and remain cautiously optimistic about the future.
According to Forbes’ report on the recent run-up in BTC price, other cryptocurrencies including Ethereum, Bitcoin Cash, Litecoin, and EOS all made double-digit gains in the past day. It’s believed “improving bitcoin and crypto sentiment” along with “technical data” is spurring on the market. Things may get even better from there.
Canaccord Genuity investment bank analysts believe bitcoin will rally even more in the next two years. They’ve even gone so far as to say it could return to its 2017 highs because of a big event in 2020. That is the “halving event” where the total number of bitcoins that miners will be rewarded is cut in half. In addition, there appears to be a cyclical pattern based on previous Bitcoin price movements.
In a note to clients, the Canaccord researchers mention a similarity in price action for Bitcoin to back in the 2011-2015 and 2015-2019 timeframes. They go on to say in their note, “While this simple pattern recognition has little fundamental basis, we note that bitcoin does operate on a four-year cycle of sorts, as the halving of bitcoin’s mining reward occurs approximately every four years.”
With the current price of Bitcoin sitting just near $6,800, BTC has dropped over $100 in the past day. However, it’s been on a rally since a month ago, climbing over $1,700. BTC is still $1,681 off its price from one year ago, and a ways from its previous all-time high at the $20,000 level.
Either way, it appears the recent rise of Bitcoin could bring about what cryptocurrency enthusiasts refer to as “FOMO,” or a “Fear of Missing Out” on the next big Bitcoin rally.
