2019 Bitcoin Rally Beats 2017’s All-Time High $20,000 : Crypto VC Chief
This year’s bitcoin price boom is different than 2017’s rally leading up to $20,000 and that’s a good thing. | Source: Shutterstock
By CCN: Barry Silbert, the founder and CEO of Digital Currency Group (DCG), one of the most influential venture capital firms in the crypto space, has said that the current rally of bitcoin is different from 2017.
The prominent investor emphasized the noticeable improvement in the infrastructure supporting bitcoin and the emergence of trusted custodial service providers that allow accredited and institutional investors to commit to the market.
Is the Bitcoin Recovery Only Beginning?
Against the U.S. dollar, the bitcoin price has increased 96 percent year-to-date (YTD), easily outperforming major traditional assets and indices like the S&P 500.
However, from its all-time high, the bitcoin price remains down by more than 64 percent and at $7,200 and it is still far from rebounding to its previous high.
According to Silbert, the recent recovery of bitcoin from around $5,000 to $8,000 at the month’s peak is fundamentally different from the bull run of 2017 due to the presence of strong infrastructure.
Sentiment, the technicals look great. An 80 percent drawdown happened three or four times and every time that’s happened [it hit] record highs. So as soon as you get the price going back up, and animal instincts come back [market recovers].
But the difference between this increase in price versus the bubble in 2017 is the infrastructure is much different.