Is the current Bitcoin price preparing for a new bull run?
Having reached as high as $9,700 on April 25th, it is safe to say that Bitcoin is far from as dead as some would like. What is more, thanks to a little help from Litecoin, Bitcoin might just be about to launch into an incredible 2018 growth spurt.
How Litecoin Just Helped Validate Bitcoin as a Payment System
With any Bitcoin price hike, it is important to look at recent market events, in order to understand why prices are rising. What is more, recent $1,000 surges in prices over the past 7-days, may be due to a $99 million Litecoin transaction on April 19th. - More specifically, one which was picked up by the likes of Business Insider, as costing just $0.40 to process and which was settled in under 2.5 minutes.
Why Litecoin Transaction Fees & Processing Times Hold Relevance for Bitcoin
Litecoin network speeds and mining fees hold significant relevance for Bitcoin. This is due to the fact, that using Litecoin as Bitcoin sidechain, is appreciated by many as the best way for Bitcoin to scale long-term. When, therefore, Litecoin is used to send $99 million dollars for less than the price of a postage stamp, this reminds market watchers of what Bitcoin itself will soon be capable of.
What Else is Driving the Current Bitcoin Price Upwards?
With payment processors like Western Union charging a flat fee of $5 - $10 for monetary transfers (much less than $99 million), it is safe to say that Bitcoin (by virtue of Litecoin) still holds relevance as a payment system. At the same time, however, several other factors are also helping Bitcoin’s value steadily start to increase.
Might we be Seeing the Start of a New Bitcoin Bull Run?
Despite having pulled back to $9,000 less than 24-hours after reaching $9.700, Bitcoin’s long-term outlook is still decidedly positive. As for whether reaching $9,000 signals the start of a renewed bull run, it is still too early to tell. This being the case, the best advice for anyone who held through January’s drop from $20k TO $10k, would be to simply keep on holding!