Breaking Records: Bitcoin Closes Week and Day at Historic Highs

At the close of the week we saw the Bitcoin price soared to $106.500, bringing the digital currency to within 3% of its all-time high. It is notable that Bitcoin has now closed six weeks of gains, fueling expectations for the future.

The previous record for the closing week was $104.400, set in December, while the all-time high of $109.358 was reached on January 20.

Bitcoin Loses Momentum

However, after closing the week, Bitcoin lost momentum and fell to $102.857. This represents a slight decrease of 0,49% in the past 24 hours and a decrease of 1,12% over the past week. This indicates that Bitcoin is facing considerable resistance in the current market and does not seem to be able to break through into a new bull market.

This is not surprising, given the ongoing trade war between China and the United States, which hangs over the market like a shadow. The current negotiations have yielded a temporary agreement, but a definitive result is not yet in sight.

Relief at the market

However, the recent rise is looking more and more like a new bull market, although perhaps a bit too early to draw that conclusion. Since the beginning of April, Bitcoin has risen by around $30.000, which is encouraging.

Analyst McKenna points out that the Coinbase Premium has returned, a sign that the US market, where Bitcoin is often priced higher on Coinbase than on Binance, is active again and potentially driving price growth.

Cooling of annual profits

On May 18, I noted that Bitcoin’s annual growth rates are cooling off, despite the network storing more and more capital. Bitcoin is behaving like the latest macro asset of the past 150 years, continuing to attract capital until equilibrium is reached.

In the long term, I expect Bitcoin to continue to rise at an average of 8%. This is based on an expected annual growth of the money supply of 5% and an economic growth of 3% per year. In 15 to 20 years, I think Bitcoin will grow at this rate. Until then, it is important to enjoy the ride, because almost no asset can match the performance of Bitcoin in the long term. Even if the average annual gain decreases, Bitcoin will still be an interesting and unique investment opportunity.

Frequently Asked Questions

What are the current price movements of Bitcoin?
Bitcoin is currently trading at $102.857, down 0,49% in the past 24 hours and 1,12% in the past week, after a six-week run of gains.

What does the return of Coinbase Premium mean?
The return of Coinbase Premium signals that the US market is once again pushing Bitcoin higher, which usually means increased demand in the region.

What does the future of Bitcoin look like according to my analysis?
I expect Bitcoin to continue to grow at around 8% in the long term, despite a cooling of annual gains. Bitcoin’s unique position in the market remains challenging and promising.