Bitcoin has recovered from its recent fall in prices, reflecting an annual trend that sees the value of the cryptocurrency rise following a major conference in May.
The price of bitcoin rose 5% in the 24 hours after the Consensus Conference kicked off in New York City, as the fourth annual blockchain technology summit once again kicked off whip to volatile cryptocurrency.
Analysts predicted the price rally earlier this week, after bitcoin fell to its lowest level in three weeks.
“We expect the Consensus rally to be even bigger than in previous years,” said Tom Lee, head of research at Fundstrat Global Advisors, in a note to clients ahead of the conference.
Bitcoin has already hit its lowest price of the year, according to Lee, having fallen to around $ 6,500 in early February.
“In general, we see 2018 to be a strong year, but we are seeing larger, more established blockchains become dominant in 2018,” the research note states, noting that Ethereum is one of the other cryptocurrencies expected to rise. benefit.
“Summary: We expect bitcoin and cryptocurrencies to behave the same as in previous years and come together during consensus.”
The turnaround in fortunes has been reflected in the cryptocurrency markets, with ethereum, bitcoin cash, and the Ripple all registering big gains since early April.
The latest price is still just over half of the highs bitcoin reached at the end of 2017, when it peaked at nearly $ 20,000.
Since then, bitcoin has had its worst start to the year, which matches some analyst theories that the world’s most valuable cryptocurrency was experiencing a bubble.
The rapid decline was followed by a relative period of stability which many cryptocurrency experts believe would precede further gains.
How far can the price of bitcoin go?
Cryptocurrency analysts vary widely in their predictions regarding the price of bitcoin.
Ethereum founder Vitalik Buterin said in February that cryptocurrencies “could drop to near zero at any time,” telling his Twitter followers not to invest more money than they can afford. to lose. Since then, the price of Ethereum has fluctuated between $ 950 and $ 350 and currently hovers around $ 800.
Others have been much more bullish, with bitcoin expert Michael Jackson story The independent that he believed bitcoin would return to its highs from last year, and even go way beyond.
As the price of bitcoin neared $ 10,000 this week, a Twitter user noted that its average daily growth rate since 2009 was around 0.5%.
If he continues this growth, Twitter user speculated, a bitcoin would be worth $ 5.6 million by 2021.