Bitcoin is currently trading at a one-year high
For most of 2018 and the first quarter of 2019, people forgot about cryptocurrencies. However, cryptocurrencies have had a 2017-like rally recently, which has seen Bitcoin (BTC) more than double in less than two months. Insane, right?
Bitcoin is currently at its highest point in 12 months. It reached a high of $8,931 on May 27 before falling a bit. It’s currently trading at $8,607.62. The cryptocurrency has climbed over 13% within one week. However, it’s still far below the peak of ~$20,000 it reached in December 2017.
There hasn’t been a clear catalyst for the rally
The rally hasn’t had a single clear catalyst. Some think that people have chosen cryptocurrencies as an alternative investment as the US-China trade war has continued to affect equities. The correlation between stocks and Bitcoin this year has been -0.1.
Like in 2017, the initial buzz around cryptocurrencies has caused more people to get behind the rising wave. The Bitcoin rally was initially driven by “systematic buying” by a “handful of large players,” according to Alex Kruger.
Unlike stocks, the future path of cryptocurrencies can be difficult to parse, as no one really knows what drives their movements. However, some experts think that the crypto rally may have legs before cryptocurrencies decline again. Cryptocurrencies are one of the biggest momentum trades out there.