Bitcoin is on the rise. The cryptocurrency is trading around $18,400 after starting the month at $13,748 — its biggest gain since losing 65 percent of its value in a 2018 crash.
Whether another drop-off is on the horizon is up for debate, but champions of cryptocurrency maintain that in the long-term things are looking up for bitcoin.
“I would say, if anything, a small pullback is going to be bought quickly as we see the story and the narrative around a digital asset, like bitcoin, remaining really true and necessary, in the times ahead,” Catherine Coley, CEO of Binance.US, told Cheddar.
Binance.US is a trading platform for bitcoin and more than 50 other digital assets. The San Francisco-based company launched in September 2019 and has since become one of the largest cryptocurrency exchanges in the world, giving it a clear stake in raising participation in cryptocurrency markets.
Coley said the company hit an all-time high in trading volume on Sunday, and that bitcoin, in particular, is seeing more engagement than ever.
The price jump, she added, is being driven by a combination of first-time buyers and stalwart bitcoin owners who are holding tight to their digital wallets.
“Well, the easy answer is more buyers than sellers, but the better way to look at this is really what’s taking place here: you’re still seeing the demand for bitcoin come in, while those that have been holding bitcoin remain HODLers, as we call it in the industry,” she said.
HODL, an intentional misspelling of hold, is slang in the cryptocurrency community for a long-term strategy of holding onto coins rather than selling regardless of value appreciation.
As the access to bitcoin markets increases, Coley said there will be a “supply shock” but that bitcoin will continue to rise in the long-term.
“I do think 2019 and most of 2020 have stood true that digital assets aren’t going anywhere,” she said. “If anything they are getting more information involved. We see the regulators taking key steps and measures into opening up access for banks.”