Experts Name Bitcoin Price Growth Triggers
After being down below $7,000, the Bitcoin price is growing again. Importantly, such price moves are not something that comes out of nowhere. But is it because of the whales, the politics, or something else entirely?
Here is a roundup of experts’ opinions about the reasons behind Bitcoin rally and their forecasts regarding the long-anticipated crypto-spring.
Institutional Players at Helm
According to Alexey Kirienko, managing partner at Exante, the drop in Bitcoin’s real trading volume at the beginning of January and the sudden return of the demand may signify that institutional investors are ruling the market.
“On January 13th, CME launched Bitcoin options trading. The platform outpaced a similar product from Bakkt launched on December 9th. Another apparent reason is the geopolitical uncertainty in Iran,” he noted.
As for the altcoins, Alexey suggested that many have reached good levels for purchase.
“The most interesting things are the top altcoins, such as Bitcoin forks and anonymous coins like Dash and ZCash. In the case of ZCash, before the rally, the price has gone so far down that the network has lost some of its hash rate,” Alexey said.
FxPro analysts also believe that the current uptrend in Bitcoin price and trading volume is related to institutional investors coming back from their winter holidays.
They’ve added that their greed and fear index is in the “Greed” mode, while the relative strength index also shows that the asset is approaching overbought levels.
“Over the next few days, the crypto community will find the triggers of the current dynamics. It will take some time to test the stability of the rally. At this point, the scale can easily lean in either direction. While there is visible growth of infrastructure around Bitcoin and keen interest of professionals, altcoins are considered a kind of ‘wasted’ asset that has lost its reasons for further existence,” the analysts noted.
Global Politics and Other Clues
Bitcoin enthusiast Andriy Velykyy stressed that Bitcoin is a highly volatile asset and a target for speculations. The price moves aren’t necessarily related to some external reasons and may be triggered by players with large capital. Nevertheless, Velykyy thinks that the price could’ve been affected by recent political events.
“I can assume that the big money looks for a way to get into an asset you easily take with you when running from a problematic area. Notably, the price at Iranian LocalBitcoins is off the charts.”
Among other influences, he names the anticipation of the upcoming reward halving and the fact that Craig Wright won’t give up over 500 thousand BTC to the estate of Dave Kleiman
The founder and CEO of Galaxy Digital Mike Novogratz expressed his concerns about the origin of an extra $45 billion in Bitcoin capitalization. Earlier, he did forecast Bitcoin price growth tied to the U.S.—Iran conflict.
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
— Michael Novogratz (@novogratz) January 5, 2020
A financial analyst under the username filbfilb thinks that the current range of Bitcoin price will let it “cool off” before approaching the 200-day Moving Average. Tone Vays had similar thoughts, naming MA 200 as a possible reason behind the short-term price stagnation.
Blockstream CEO Adam Back claimed that $100 thousand and even $10 million price forecasts aren’t that far-fetched, considering the U.S. dollar inflation.
And $100k Bitcoin doesn't seem so far given we already crossed $10k threshold a few times when few expected even $1k some years back and $10k seemed crazy.
— Adam Back (@adam3us) January 11, 2020
Yuri Gugnin, the founder of the Karma platform, thinks that the last Bitcoin, from which the private key isn’t lost, will be sold sometime in the future at an auction for over $10 million “as an art object.”
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