Bitcoin, the cryptocurrency on everyone’s mind, is booming in value. Currently trading around $645 per coin, it has never been worth more, or generated more headlines that I can recall. The two are likely connected.
If you can remember April, Bitcoin enjoyed a firm rally, spiking to around $275 per coin on the Mt.Gox market. It then fell to the $60s. That was the second Bitcoin rally. The first was quite a while ago, in June of 2011 according to the same dataset, with Bitcoin spiking to a then sky-high $30 or so. It later fell to the single digits.
And so, in the first two Bitcoin rallies, we saw short-term spikes followed by sharp declines and price troughs. The gap between Bitcoin Rally 1 and Bitcoin Rally 2 was far longer than the distance between Rally 2 (April) and Rally 3 (now), but the pattern appears to be…
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