For the past month, bitcoin has broken the level of 9,000 USD several times. Probably, the cryptocurrency will manage to breach the physiological threshold at 10,000 USD. The rally is gaining momentum and has been continuing for several weeks. So far, there have been no signs that it will end soon. A threefold increase in bitcoin prices has been registered year to date. Thus, bitcoin is again considered to be the most lucrative asset for investments this year. A surge of more than 300% in less than half a year - that’s a really impressive result. In fact, bitcoin is pushing the entire cryptocurrency market up. Early this year, the market capitalization was at 200 billion USD, in April this figure advanced to 445 billion USD, and in May the capitalization reached as high as 725 billion USD. The total value of the largest crypto projects — Bitcoin, Ethereum, and Ripple — exceeded 1 trillion USD in May. At the same time, there is a big difference between the current rally and the last year’s surge.
Back in 2018, people were buying bitcoins in hope of getting fast profits. Nowadays, investors’ decision to buy the cryptocurrency is usually well-balanced. In most cases, bitcoin is chosen as an asset for long-term investments, which proves a sustainable nature of the ongoing rally. The institutional investors tend to be more reserved and don’t rush around unlike individual traders. Therefore, the risk of another bubble is lower this time.
