Bitcoin prices have surged nearly 60% to about $6,000 after plunging almost 75% in 2018, media reports said.
The cryptocurrency is, though, still far from its all-time highs of just under $20,000, which it hit in December 2017. But according to CNN, crypto investors are increasingly optimistic that the bitcoin bounce of 2019 is real and that it and other cryptocurrencies may enjoy a steady march higher.
“The huge crash in 2018 was a correction after a speculative mania. The gains in 2017 were astronomical,” said Everett Millman, an analyst with Gainesville Coins, an investment firm specializing in precious metals and cryptocurrencies.
Millman thinks some traders are still buying bitcoin because of “hopes and dreams.” But he’s cautiously optimistic that the worst days for bitcoin and other cryptocurrencies are behind them.
Crypto investors increasingly believe bitcoin was oversold last year and is now becoming a legitimate investment for people looking to hedge the risk of currency and interest rate fluctuations.
That could make bitcoin and other cryptocurrencies a solid bet for buy-and-hold investors over the long haul and not just short-term traders looking for a quick pop in price.
“The selling in bitcoin got exhausted last year and people started to come back in around $4,000,” said Tyrone Ross, managing partner with NobleBridge Wealth Management.
“You are now starting to see more people cite bitcoin as a credible asset that you can use to diversify your portfolio. People are looking at bitcoin as a type of digital gold,” Ross added.