There's no question about who won 2017. It was cryptocurrencies. But, more specifically, it was Bitcoin, which has absolutely exploded.
In 2017, Bitcoin, the one that started it all, went from less than $1,000 a coin to above $19,000 on the Coinbase exchange. Since then, it has pulled back some, but it's still well above $16,000.
That high represents a better than 1,900% increase in price.
So other than my mother-in-law and niece and garbage man asking if they should get in, I decided to find out if there's a trend in Bitcoin that wasn't there before now that people who aren't typically traders or investors are interested.
What I found was especially interesting because it reminded me of another kind of currency rush…
I have to admit that the recent moves in cryptocurrencies have made me a little nervous. I'm not worried about my own investment, as I was able to get into Bitcoin at next to nothing.
I'm worried about my family, friends, and even strangers who are asking me about it. My concern stems from what I'm seeing in the two charts below.
Everyone has seen the first chart, but the other one very few have seen…
Notice the volume at the beginning of the year and the volume at the end. The big interest at the beginning of the year came as it crossed above $1,000. The more recent interest was due to its exponentially growing valuation and all the positive news it had been receiving – from its growing ubiquity and number of partners to offerings from the CME (Chicago Mercantile Exchange) and CBOT (Chicago Board of Trade) to trade Bitcoin futures.
If this isn't legitimizing Bitcoin as a currency, a mainstream one at that, then I don't know what is.
Most technical traders would admit that the combination of rising volume and rising prices makes for a bullish pattern. Although this isn't a regulated security, it's possible that the rules could be thrown out here.
So, aside from telling my Uber driver what I do for a living and having him ask me if he should get into cryptocurrencies, is there a trend in Bitcoin that wasn't there before now that people who aren't your typical traders or investors are interested?
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.