The Bitcoin Rally Is Real

Strap in, friends, bitcoin is back. After spending most of the year in something approaching the doldrums, the cryptocurrency is enjoying a strong price rally, pushing it to its highest value of 2015.

Of course, trading for around $320 per coin is still a mere fraction of its former heights. But at the same time, if you picked up some bitcoin when it dipped below $200 earlier this year, the boost is likely welcome.

Via the fine folks over at Blockchain.info, here’s the chart:

Screen Shot 2015-10-30 at 9.27.07 AM

The price of bitcoin is only one metric of many that can be employed¬†to gauge the health of its larger ecosystem. Volume, difficulty and the aggregate hash rate are also useful barometers.¬†However, when bitcoin’s price does rise, it generally enjoys a boost in public interest. Given that bitcoin remains a niche product, what it needs is just that: more attention.

After seeing an ocean of capital committed to bitcoin-related startups, the market may be in a period of self-correction. When Bitpay, a bitcoin payment solutions providers that has raised more than $30 million, recently cut staff, it was noticed.

A few things to watch for:

  • Length of the rally: can bitcoin keep up its current head of stream, or will short-term profit taking slow its current rise.
  • Impact of the improving price of bitcoin on consumer interest; provided that bitcoin can indeed pick up new adherents, the rally will have more than just a trading opportunity.

Still, bitcoin chugs along.