Bitcoin is Perfectly Positioned for a Massive Bull Run: Are New All Time Highs On the Horizon?
- Bitcoin has left the crypto winter behind.
- After gaining the confidence back during crypto spring, we are now off to crypto summer.
Recently, we climbed to a new 2019 high at $13,900, for the first time in 18 months. Though we took a drop down from here to as low as $10,300, we are back on the move as we trade at $11,775 but still in the red by 2.20 percent.
Bitcoin price is up 218% till date in 2019, Source: TradingView
Meanwhile, the trading volume has dropped down from yesterday's $6 billion to $5 billion today, as per Messari’s Real 10, 24 hours volume.
Bitcoin’s bull run is very much intact as we make our way towards a new all-time high marking the fourth parabolic rise in the leading cryptocurrency’s 10-year life span.
A pullback like such is rather healthy for the market to achieve new highs with strong moves.
What will Drive Bitcoin?
The most common and upcoming factor to drive Bitcoin price to a new peak is the May 2020 halving event. By cutting down the supply of an asset that has fixed figure to be ever mined while demand either remains the same or rises, it appreciates the value of the asset as happened in the past on three different occasions.
This time what’s one of the main differences is the active participation of institutions. Every other day, CME is hitting record trade volume of Bitcoin futures and in open interest.
Big names like ICE via Bakkt, TD Ameritrade, E-Trade and many others have entered the space.
Fidelity Digital Assets of Fidelity Investments that manages trillions of dollars in assets is all set to enter the market as well as their site is now entertaining customers to contact them. Moreover, it will provide solutions exclusively to hedge funds, family officers among other institutional investors and even expected to become available to eligible US-base institutions in early 2019.
Another well-known reason is a trade war.
Bitcoin has already shown how it can work as a hedge as recognized by China as well during the US-China trade war.
Earlier this month, a report by Grayscale Investments analyzed that Bitcoin is indeed a hedge against global liquidity crises as, during Grexit and Brexit, Bitcoin gained.
China has also time and again played a role in a surge in Bitcoin’s value right from 2015 and 2016 when it devalued its currency. China’s legal stance on Bitcoin might be left hanging but its citizens are surely attracted towards the digital currency.
Mosques receive free energy in Iran. Iranians have set up Bitcoin miners in them. There’s around 100 here, producing around $260,000 USD a year. This money goes a long way in Iran’s choked sanctioned economy. https://t.co/fczwdqCPAd
— mahsa alimardani 🌒 (@maasalan) June 26, 2019
Geopolitical uncertainty, Fed’s dovishness, MMT, QE, over $10 trillion negatively yielding debt and rising socialism are a few of the other factors that would drive Bitcoin to new all-time highs.