May 13, 2019
Bitcoin Pushes Past $7,000
Good news for cryptocurrency traders! For the first time since October 2018, the price of Bitcoin crossed above $7,000. To top it off, the value of the crypto market increased to $213 billion. Since January 2018, Bitcoin has now taken center stage again and it now dominates 58% of the entire crypto market. Interestingly, until now, the usual trend in the crypto market is that when Bitcoin increases, other cryptos also increase, thereby reducing Bitcoin’s dominance in the markets. This time though, this has not happened and analysts believe this is as a result of two reasons. Firstly, before the SEC takes its important vote later this month, many global investors are currently converting other cryptocurrencies to Bitcoin. Secondly, new money is coming into the market, which has increased the investments in Bitcoin. Since 2017, when the crypto craze started, the crypto market is now on its strongest uptrend. Will this trend continue?
In other financial news, the stock prices of Uber and Lyft dropped by more than 7% last Friday. Investors are evidently concerned that the business model for both companies is too risky. Even though social sharing is popular globally, and growing rapidly, investors are concerned that the stock price is too high. On Friday last week, Uber closed at $41.57 a share, with a market value of $70 billion. Since Uber loses almost $2 billion a year, investors feel that the share price may still be too high.