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On August 21st, Bitcoin broke through the $50K plateau for the first time since the spring. Only a month ago, some analysts were declaring that we were at the start of another crypto bear market. Clearly, that’s not the case.
Since then, we’ve seen some low-to-moderate volatility in the cryptocurrency market, with Bitcoin pulling back around the $48K to $49K levels. This is a good sign for those bullish on crypto, since it signals that we’re not about to see off-the-charts (read: unsustainable) price movements characteristic of asset bubbles. Instead, we’re seeing Bitcoin stabilize at a price point that matches its fundamentals.
Bitcoin isn’t even crypto’s main success story of August. The second-largest cryptocurrency by market cap, Ethereum, saw even more impressive gains. On August 1st, one Ether token was trading at $2,560. By the end of the month, Ether traded at $3,440—that’s a gain of nearly 35% in the span of a single month.
Right now, there’s a tonne of momentum behind Ether. In the last 48 hours alone, over 1.3 million addresses have purchased over 11 million ETH.
By all accounts, Ethereum looks ready to return to the $4K mark, a level it hasn’t seen since its all-time high in May. The surge in market activity around Ether has even left some analysts wondering if it’s set to overtake Bitcoin to become the most dominant coin in total volume traded.
It remains to be seen whether that’s even possible. In August, Bitcoin miners reported $1.4 billion in revenues, representing a 45% increase month-over-month. This is excellent news for the health of the Bitcoin market, as it signals that the supply side is remaining active even in light of anti-mining regulations coming into effect in China.
The Bitcoin market has proven, time and again, that it’s resilient. Over the last month, we’ve been given yet another case study in its resiliency. As an increasingly mature asset, we should expect to see fewer cases of erratic volatility and more smooth, gradual price movements like what we’ve seen in recent weeks.
While the crypto market is on the upswing, now would be a good time to get in on the action. If you’re curious about taking a position in Bitcoin or another cryptocurrency, consider checking out our reviews of the top Bitcoin IRA companies. That way, your holdings can grow in value on a tax-advantaged basis.
Mark Turner is an author and editor at Sophisticated Investor. He has over two decades of experience in the financial industry as a broker in both Chicago and New York and has written for several top tier publications. He currently covers the topics of alternative investments, geopolitical events, US economy, portfolio diversification and others.
