EOS, the ever-popular competitor, seems to have had a stroke of luck, as it has seen the price of its associated token surge upward by nearly 30% over a 24-hour period. Beginning on Sunday, February 17th, the of EOS took off from $2.90 and soared to $3.75 by Monday night, allowing the coin to reach the highest value that it has seen since last November.
This has, as a result, driven up the EOS market cap as well: the total value of the EOS token supply hit approximately $3.3 billion on Monday. The coin took on the title of “fourth largest cryptocurrency,” surpassed only by bitcoin, Ripple, and Ethereum. However, it is not clear if there is much substance beneath the price surge and the ensuing hype.
No Clear Reasons For Surge
It is very unclear what could have caused this price surge, as no major events concerning EOS have taken place. Third-party announcements, such as EOSBet’s and Scatter’s have garnered relatively little attention. More generally, EOS dApps seem to be performing more or less as usual.
Furthermore, one highly anticipated project, a from EOS’s parent company, Block.one, seems to be facing major delays. Block.one CEO Brendon Blumer a few days ago, and his statement produced a very negative response that should have driven EOS prices downward, if anything.
Other Prices Also Rising
It seems likely that EOS’s price surge is actually part of a larger price trend that is being . Many leading coins have also risen over the past week, and EOS may simply be catching up with the trend faster than others. In fact, we are seeing broadly similar price trajectories for , , and over the last seven days:
Only time will tell if EOS’s price surge is sustainable—though it is possible that hype will continue to drive up the price even if there is nothing to actually ground it. However, some sources have performed a more on the coin, and those reports paint a much more thorough picture of EOS’s probable future prospects.
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bitcoin price now appears to be shrugging off politics that have split the community as it looks to test the critical $1,300 mark yet again.
Key Resistance Level at $1,300
BTC price is again coming within striking distance of the critical $1,300 mark, currently sitting at $1,250 at press time.
Back on March 6, bitcoin set the all-time closing high of $1,277 with a record-high spike of around $1,330 a few days later fueled by ETF hype before crashing more than 25% after the rejection by the Securities and Exchange Commission.
But the world’s first decentralized cryptocurrency has rallied since its March 24 low of $960 when divisive politics and heightened put downward pressure on the price.
What’s more, the resurgence also comes at a time when Chinese exchanges have their bitcoin withdrawals.
In addition to being up 30% so far in 2017, bitcoin’s market capitalization is now looking to break its all-time high of about $20.6 billion as it climbs towards the critical $1,300 resistance level.
“$1300 is a significant psychological price point,” Civic CEO, Vinny Lingham, back in February. “This is the point that arguably no one who had previously bought coins during the last ‘bubble’ is under water.”
7 Positive Trends Driving BTC Price
With coming closer to SegWit activation, many hope that the ‘silver to bitcoin’s gold’ will become a testbed for this promising technology. This has made Litecoin significantly in recent weeks while also raising hopes for activation on bitcoin while allaying fears of a contentious hardfork.
However, this is only one positive factor in what has been a string of good news for bitcoin in recent weeks.
First, Japanese businesses and several major retailers already seem enthusiastic about payments following their legalization in the country on April 1st.
Second, bitcoin adoption appears to be growing everywhere in the world from to to the amount of people actually using it for payments, to a recent Cambridge University study, which noted:
[T]he number of people using cryptocurrency today has seen significant growth and rivals the population of small countries.
Third, following increasing from China, may also be planning to ‘legalize’ bitcoin by as early as 2018. Meanwhile, another major economy, , is seeing major growth with people increasingly using bitcoin as a store-of-value and for online purchases in the wake of the disaster.
Fourth, the traditional global banking system including SWIFT appears to be under from hackers, not to mention the NSA. As a rule, any weakness and uncertainty in the traditional financial spells good for a potentially better alternative that’s more secure due to its decentralized, pseudonymous natures and immutability aspect.
Fifth, major companies such as are beginning to actually use the bitcoin blockchain for other things besides money such as record time-stamping and document verification. This could introduce more use cases for the bitcoin network, boosting its development, growth, and overall value as a result.
Bitfinex Sticking Out Like a Sore Thumb
Another major factor in the upward pressure on BTC price is bitcoin exchange Bitfinex, which seems to be experiencing problems on the fiat side due to with partner banks. There also seem to be problems with liquidating the USDT (Tether) cryptocurrency token that replaces the USD currency on the Poloniex exchange.
A perfect storm may be forming on Bitfinex. ~half of all BTC in custody are borrowed (sold for fiat / another crypto). If bitcoin goes up…
Therefore, it comes as no surprise that bitcoin on is trading at nearly $1,330 or $80 above market price as traders seek safety. Of course, the solvency of the Bitfinex exchange is also coming increasingly under question despite to the contrary.
[Editor’s note: It remains to be seen whether this is a positive or a negative factor for the BTC price in the short term. However, shaking out insolvent businesses should be a healthy step for the bitcoin economy moving forward.]
In any case, bitcoin should continue to chug along as its overall growth since 2014 has made it more resilient and much more capable of withstanding another ‘Mt.Gox’ scenario if it arises.
Will bitcoin finally break the $1300 psychological barrier? Share your thoughts below!
Images courtesy of coinmarketcap.com, shutterstock
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