Bitcoin is surging greatly, and many analysts are struggling to figure out why.
Pushing the Currency Further and Further
Bitcoin has been working tirelessly since early 2018. The currency fell from its all-time high of nearly $20,000 in January of last year and has since witnessed roughly 15 months of either little or no gains. Though there have been a few spurts here and there, bitcoin has mostly remained in the red, officially dropping down to $3,500 in November following a controversial bitcoin cash hard fork.
However, in April of 2019, the currency began swelling like it did in 2017. Nobody really seems to know why, but many standard, everyday traders don’t seem to care. They figure so long as bitcoin continues to rise, they’re in for a solid moneymaking game. The currency rose to $5,000 during the first week of last April, but has since shot up by an additional $3,000, and is now trading in the $8,000 range.
It’s certainly good news, but there are many reasons behind the currency’s sudden hike that analysts are considering. For one thing, we have witnessed increased adoption over the past several months. With the introduction of platforms like Bakkt and Flexa for example, many retailers are now being given an opportunity to accept crypto as a form of payment. This is pushing crypto’s mainstream status, as well as its usage.
Mati Greenspan, a senior analyst at the cryptocurrency exchange e-Toro, comments:
There are literally dozens of reasons for bitcoin to be surging right now, but the important thing to remember is the main driver of this rally is increased adoption.
The situation is almost funny, in a way. Despite its constant price drops in 2018, bitcoin has maintained a steady level of popularity, and usage hasn’t seemed to fall. People and businesses have continued to back bitcoin without regard to its previous “drooping” phase.
Other possible reasons include increased activity amongst institutional traders, who have seemingly shown greater interest in crypto. Record cash flows have been recorded in the Bitcoin Investment Trust (GBTC), which allows many investors to hold bitcoin “indirectly.”
In addition, bitcoin is being looked at as a way of “saving up” against the current trade war between the United States and China. There have also been several crypto conventions in the Big Apple, as of late. New York, at one point, was a state that was notoriously anti-crypto.
Everybody Has Different Ideas Regarding Bitcoin’s Rise to Power
Jeremy Allaire – the co-founder and CEO of Circle – recently stated in an interview:
Crypto fundamentals have been strong and building since early this year, when it was clear that we were oversold, and the continued parade of positive news and new retail and institutional offerings launching are firmly behind this bull market move.
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