The bitcoin price today is $11,390.10. The bitcoin price continues to fluctuate between the range of $10,000 -$12,000. As such, the bitcoin price is volatile yet within a specific range, pointing toward more stability. Let’s take a look into some of the recent events that may have contributed to this price.
Bitcoin as a Hedge
More experts ranging from Mark Yusko to Chamath Palihapitiya and others point to bitcoin and call it a hedge or schmuck insurance. We may have witnessed this in the past week where traditional equities fell 2-3% while bitcoin was up 2-3%.
The store of value (SOV) narrative of bitcoin is one concept that will continue to be challenged over the next few years, it will be interesting to see how bitcoin holds its ground throughout the myriad macroeconomic storms we face today and in the future. We’re also witnessing a general decline in the cryptocurrency market, cryptocurrencies such as ethereum, litecoin, XRP, and others have declined and the broad cryptocurrency market is in the red at the end of this week as well.
While bitcoin takes the lead in volume and price, detractors of the cryptocurrency market, like Mr. Wonderful/Kevin O’ Leary, may point to the fact there’s still much “crypto crap” present within the market. Indeed, this is one of the largest factors to watch out for in the cryptocurrency markets. Experts believe that a bitcoin bull market may not come until the value is drained out of many the “crypto crap” coins that are still present right now.
This is not to say that all other coins or tokens besides bitcoin is “cryptocrap”, more so that more value may only accrue to bitcoin when there’s more clarity in knowing what’s real, what’s not and why.
When Crypto Cleanse?
While bitcoin may well experience a bitcoin bull run prior to this long awaited crypto cleansing, it is certain that countless deployments of IEO’s and IDO’s that replicate the frenzied markets of yesteryear do not contribute to more credibility in the cryptocurrency realm.
The first step is that more educational firms like Messari, Delphi Digital, and others conduct due diligence, provide research and dig deep into what matters. Thankfully, this is happening on a more streamlined level but we might far from where we need to be on awareness and education.
In the meantime, bitcoin infrastructure is progressing, established companies like Square is stepping into facilitate more bitcoin development, apps like Fold and TryLolli help to incentivize bitcoin distribution and acquisition.
Cryptocurrency is evolving, it is taking it’s sweet time but it is moving forward at a steady pace.