The Price of Bitcoin in USD is Soaring to 2019 Highs, Here’s 12 Major Factors Behind the BTC Boost
The price of Bitcoin has been on a steady rise since April. Several people are asking what is behind the surge so here are the major factors behind the current surge which is not likely to stop anytime soon.
1. Bitcoin halving
Bitcoin is a limited supply cryptocurrency although it is mined. The cryptocurrency is capped at 21 million coins and once the 21 million are issued, there will be no more coins. This is likely to raise the price as the coins become scarcer. Every four years, miners reward for mining a block is halved.
The next halving is expected in 2020 and is a key milestone in the history of the cryptocurrency. The halving means block reward for miners will be halved from 12.5 to 6.25 BTC and so coin issuance will slow down. This will pump up the price and the effect is already being felt, which is why the market is soaring at this time.
2. Coming Fidelity crypto trading platform
Fidelity Capital, one of the largest asset managers in the world is scheduled to enable crypto trading for institutional investors in a few weeks’ time.
This will significantly improve the industry’s image and bring more credibility that will encourage institutional investors to invest in crypto assets.
3. Stockbrokers’ entry
Another significant contributor to the current Bitcoin surge is the fact that two of America’s biggest stockbrokers are coming into the cryptocurrency industry. This means all of their clients are coming with them and it will be a major boost to the industry.
4. Investors’ return
Although the cryptocurrency market crash was a harsh reality for several crypto investors, the market started bouncing back in 2019 after hitting the $3,200 bottom in December 2018. Those who sold their assets during the dip are returning to the market as they see a surge and this continues to increase the surge.
5. Everyone wants a bite
The factors that are pushing Bitcoin up seem to have a ripple effect. As the price goes up, everyone wants a piece of the cake and so even those who are not originally into Bitcoin can spare some dollars to buy.All this continues to build Bitcoin momentum and push it even higher. More of such buyers are likely to show up in the next few days.
The social media giant has indicated that it is planning to launch a cryptocurrency which will run on whatsapp. Although the crypto community has received the news with mixed feelings, it is likely that if Facebook does launch a cryptocurrency, its several million users will be exposed to the cryptocurrency industry and that is a huge promoter. Since Bitcoin is the lead crypto, it is only naturally for the world to rush it, and here we are.
7. Bitcoin is not going anywhere
Many economics professors and Nobel Prize Winners have condemned Bitcoin to death, prominent among them being Nouriel Roubini (Dr. Doom). During the 2018 crash, Roubini said Bitcoin was on its way to zero where it belonged. Unfortunately for him, all arrows point to a brighter future for Bitcoin than ever. This has made many skeptics to change their minds and who knows? They could be buying!
8. Maturity of Bitcoin market
The cryptocurrency market like any other has been through so much and just like any other, was destined to mature. The maturity dream seems to have come true and is playing out on the prices of the asset. As maturity and resilience continues to build, a higher price is imminent.
9. New York Blockchain Week
This week, hundreds of blockchain leaders are meeting in New York to discuss the future of the industry. This kind of gatherings have historically given Bitcoin a lift and it seems this year is not an exception as the meeting opens doors to new investors in the industry whose entry may have caused a pump!
10. Increased on-chain transactions
The number of on-chain Bitcoin transactions has increased since the beginning of 2019 and reached a remarkable height nearing the 2017 high in April. Such increase in number of transaction only reveals how many more people are using Bitcoin and the direct result? Price pump!
11. Stock market indicators
The stock market seems to be in on a downward trend right now. Again historically, this implies Bitcoin is on its way up i.e Bitcoin and the stock market do not move in the same direction at the same time. It is therefore no surprise that Bitcoin is rising high at this time when stocks are suffering.
12. Nike’s new cryptocurrency
Nike, the footwear and clothing company has indicated interest in creating its own cryptocurrency. The company implied this when it filed a trademark for “Cryptoticks” in April.
Its aim is to create a digital token to be used by its community of buyers and for transactions to as well as for sports. This is a major factor that could drive the lead cryptocurrency up as Nike fans and customers begin to venture into crypto ahead of its launch.
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Bitcoin’s price is $28,482.33 BTC/USD exchange rate today. The real-time BTC market cap of $550.69 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $2.78 Billion and live coin value change of BTC -0.28 in the last 24 hours.
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