Bitcoin is on a strong bull run and just broke the record for market capitalization, reaching a high of $13.92 billion. The last record for marketcap was during the parabolic bubble of 2013.
The main difference between this bull run and the one of 2013 is that the current bitcoin ecosystem is more mature and the bull trend is healthier. Bitcoin was just making it to the mainstream’s attention in 2013 and it lacked necessary infrastructure for most people in the world to easily purchase and store BTC.
The bitcoin markets in 2013 didn’t have the same liquidity that we have today. Most of the price discovery was driven by Mt.Gox and reports have indicated that Willy bots were artificially pumping the price. There are more exchanges available around the world today, which makes it difficult for any one exchange to manipulate the price.
Bitcoin also has more acceptance from legacy investors and portfolio managers as a uncorrelated asset class that can act as a hedge. Over a billion dollars of investment capital has gone into building up Bitcoin’s infrastructure. Security and ease of use were major hurdles and we now have consumer friendly hardware wallets as a solution.
Bitcoin Bull Trend
The bull trend in 2013 went completely parabolic with prices jumping from $100 to $1200 over the course of a couple of months. Those were unsustainable gains that led to a year long bear trend and capitulation back down to $166 at the beginning of 2015.
The current bull trend is healthier and has more liquidity and user adoption support it. Bitcoin has been on a longer bull trend since the fall of 2015, which is more sustainable. We’ve had several months of consolidation patterns, breaking out of two large ascending triangles on each leg up. If we continue on our current trajectory then $1000 USD is the next major point of resistance where we may see another larger consolidation pattern. At the current pace, bitcoin is poised to break into new highs for 2017.