It’s been a wild week for Bitcoin USD (BTC-USD).
On Wednesday, the cryptocurrency’s value jumped about $2,000 to as high as $13,714.81, but by Thursday afternoon those gains had been wiped out.
According to data from Coinbase Pro, Bitcoin lost nearly $1,000 in value in one 20-minute span Thursday afternoon, freefalling 17% Thursday to baseline support below $11,000.
On Friday morning, things stabilized again to just below $12,000.
It’s possible the $12,000 mark will prove to be the latest in a series of resistance points for the coin. After all, it wasn’t long ago that Bitcoin was testing resistance at $4,000.
Then, on April 5, the coin hit the $5,000 threshold for the first time since November and hasn’t looked back since.
The Spring surge has drawn comparisons to Bitcoin’s 2017 explosion that saw the coin rocket from $1,000 in March to nearly $20,000 in December, only for the price to crash over the following months.
But Jeff Koyen, the founder of Codebase Ventures Inc (CSE:CODE) (OTCMKTS:BLKFF), thinks this year’s run could be different. Then, a lot of fringe investors jumped in on a fear of missing out, Koyen said, but now things have turned more mainstream.
“Now we’re seeing real Wall Street money come in,” Koyen said. “We’re seeing crypto desks open at traditional firms. I think the prices were irresistible.”
An industry vote of confidence
One factor possible driving investors to Bitcoin is a signal from major tech players that cryptocurrencies are here to stay.
Libra will be somewhat of a competitor to Bitcoin, but Facebook’s decision to dive into cryptocurrency is an endorsement of the sector as a whole.
“You can’t ignore Libra,” Koyen said. “If Facebook is saying the technology is sound, a lot of people are going to take notice.”
In May, Square Crypto tweeted that it expected to make its first hire that will speed the widespread adoption of cryptocurrencies.
We are close to making our first hire. So let’s set some expectations. True to @jack’s founding tweets, we are building open source projects that will make mass adoption not just possible but inevitable.— Square Crypto (@sqcrypto) May 21, 2019
Our goal isn’t to make money, but to improve it.
Jack himself hasn’t been shy about his stake in Bitcoin, admitting to spending $10,000 per week on the crypto, per Forbes.
Will the run last?
Bitcoin is on pace ending Thursday lower than before its Wednesday spike, and not everyone is optimistic.
Investors held roughly 14% more short positions than long positions last week, according to a Commodity Futures Trading Commission report.
Koyen is firmly in the long camp. For him, Bitcoin has two major appeals.
“First, it’s empowering,” Koyen told Proactive. “People don’t need to go through brokers to invest, they can buy Bitcoin and get in on the market themselves. And technologically, it's a great way to serve the unbanked and underbanked around the world.”
—Updated to include Friday price data—
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel