It’s clear to everyone now that Bitcoin is here to stay. The father of all cryptocurrencies is observing some strong gain. With explosive power, last week Bitcoin managed to jump over the psychologically important $ 10,000 hurdle and now seems to be making full headway for the $ 15,000. It feels like the bull market and the euphoria of 2017 are finally back.
The last time price penetrated the bearish cloud on the weekly for the first time after the end of a bear market, the price went on to increase by >5000%. If the same thing happens now, that would put the price at $500k at the end of the next cycle. Sounds funny, but so did $20k… $BTC.
Bitcoin takes aim at $100,000 target. $btcusd is experiencing its fourth parabolic phase dating back to 2010. No other market in my 45 years of trading has gone parabolic on a log chart in this manner. Bitcoin is a market like no other. pic.twitter.com/wE4j3riMgI
But why do we suddenly see such a strong price rise? Why is Bitcoin suddenly rising again?
Possible reasons
If you ask the Bitcoin community, there are several possible reasons why the Bitcoin price is rising so fast at the moment. There may be four reasons. These are
- Lightning Network
- The Halvening
- New interest
- Institutional investors
Many people think that Bitcoin is being pushed to new heights by boarding (big) banks and pension funds. Some people suspect that the upcoming Halvening in early 2020 is the trigger for the current price rise.
Halvening centric perspective on Bitcoin price. H/T @StoicTrader_ & @MLescrauwaet pic.twitter.com/89trRlSOqd
There are crypto enthusiasts who think that the current price hike is mainly due to individuals previously investing in cryptocurrency, who are now buying back into Bitcoin after turning down their investment in the secure Tether port. In addition, institutional investors could also use tether as a fiat ramp using Bitfinex. So this would fit well into the suspected picture.
But as always Tether splits opinions. Because this strong influx of tether to Bitcoin can be interpreted differently. So Tether has currently accused again of printing dollars out of nothing to buy Bitcoin to raise the price artificially. That would be a classic case of market manipulation, as we have seen in the past.
I don’t think bitcoin is a scam. I think it’s tremendously fraudulently overvalued from the massive unbanked tether printing. pic.twitter.com/uEzZz9GORN
Conclusion
So, what exactly are the reasons for the price increase is not clear yet. What is clear, however, is that “fresh money” from retail investors is not behind the current price increases. Rather, they are either large investors or people already invested in crypto who swapped their tether for Bitcoin.
After the launch of Facebook’s cryptocurrency Libra, many people started to realize that bitcoin’s supply is decided and clear, but it’s also the world’s first unbiased, open-access capital that no government can control.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
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