These 7 Influences Can Fuel the Next Bitcoin Rally Towards New All Time High BTC Prices
Bitcoin has been bullish from the start of the year, however the real surge did not arrive until April 2nd when Bitcoin along with major altcoins made double digits gains, and most importantly consolidated on those gains to start a prolonged upward price trend in 2019. Bitcoin has already been up by more than 250% from the start of the year, and despite a massive price correction of more than 30% towards the end of June which plunged it's prices from yearly high of around $13,796 to just below $10k, it recovered fairly quick to trade above $11.5 k.
Mind you Bitcoin along with the whole crypto space experienced the longest crypto winter in 2018, plunging the whole market share by more than 80%. This led to many analyst making moderate price gain prediction for Bitcoin in 2019. Some believed that the prices of Bitcoin would only start climbing towards the latter half of the year while many others predicted it's prices to not go further than the $10k mark. However, as has been the case with Bitcoin prices, it has defied many odds to breach 17-month high in the month of June itself, and well on course to attain it's all time high.
Historically a plunge of more than 25% is followed by a bounce back of more than 150%, and having experienced that plunge in June itself, the new all time high price prediction sits at around $24k mark. But, it is important to know that price predictions for Bitcoin has mostly fallen flat, be it an optimistic upward price or lower one. While the move above $11k has been a bit sluggish, but looking at the market position it is only a matter of time before Bitcoin breaks out beyond the reach of many bearish investors waiting for a dip to invest.
Bitcoin's price rise in 2019 has been aided by 7 major factors, be it the detouring state of centralized financial system leading to negative yield for gov bonds, or the escalating trade war between the United States and China, all these factors have fallen right in place to fuel an epic impending bull run. Let us look at these factors closely and understand how it has impacted the prices of Bitcoin.
Global Governments Debt With Negative Yield Crosses $13 Trillion Mark
The government issued bonds were one of the major source of income for maintaining a healthy economy, however, probably for the first time in history these bonds have started to yield negative yields. More than 40% of these gov issued bonds does not offer any profit to the holder. In fact of they keep these bonds beyond their maturity date, they would start to incur negative yields, which means they would get less than what they have paid for.
This was long coming given how flawed and corrupt the centralized financial institutions have become. In the past these banks have failed us many times, burdening us with trillions of dollars in debt due to their flawed policies and favoritism towards the rich and powerful. These debts cannot be reversed by any means. Thus, it's a clear sign that we that it's time to move toward a decentralized financial system, which might be volatile right now, but it can never lead us to a financial doom as these banks have brought upon us on a number of occasions.
The Trade War
The ongoing trade war between the world's two superpowers the US and China has already plunged the stock markets around the globe. While there has been talk of truce between the two countries, it might not be long term. Many have called the truce temporary and believe there is another trade war on the cards this fall.
The investors looking for safe haven will be lured towards store of value entities like gold and Bitcoin. In fact Chinese investors are already investing in Bitcoin heavily to safeguard the value of their Yuan against the repercussions of the trade war. The gold's price has been on the steady rise in accordance with Bitcoin fueled by the ongoing trade war as well. But Bitcoin being the smarter choice even the traditional investors are flowing in heavily
The Bitcoin Halvening
Bitcoin block reward Halving is scheduled for the first quarter of 2019, which would cut the mining reward per block to 6.25 from the current 12.5 BTC. It means the already rare Bitcoin supply would be reduced to half, and as the demand supply economy goes, it would elevate the prices further up. Historically a year before the halving date, Bitcoin prices starts to show great upward trends.
Unlike central bank issued Fiats, which prints more currency to counter inflation, Bitcoin slashes the mining reward to half after every 21000 blocks which comes to around 4 year time period. The previous to halving has seen the prices of Bitcoin follow a parabolic path, and the same has been going on with the current price movement.
Bitcoin Is Becoming A Reliable Asset
Despite it's phenomenal price rise in 2017, traditional Wall Street investors maintained quite a safe distance from Bitcoin due to its high volatility rates and heavily fluctuating prices. However over the year, the volatility has been cut short and so are the risks involved in investing into Bitcoin. Trading is all about finding a reliable entity with the lesser risk, and traders continuously jump from one asset to another depending on the risks involved.
The crypto winter of 2018, cut the risk factor by a huge margin and that is why even the most traditional investors are flocking toward the crypto space amid major financial crisis just round the horizon. Earlier these investors used to invest in bonds when the stock markets were not promising, now that both those asset classes are on the downfall, Bitcoin becomes a clear choice.
Surge In Institutional Trading Volumes
Institutional investors are going to be the biggest factor in the next impending Bitcoin bull run. With the surge of these investors who have mostly refrained from it earlier the next bull run would make the 2017 price rise a mere blip on the Bitcoin's price charts. Only recently Bitcoin was trading at 40% premium on Grayscale, indicating that the bigger chunks of money from these Institutional players are flowing in the crypto space.
While the 2017 price rise had Institutional players watching from the sidelines, this time they have decided to make merry of a phenomenon which has given several new millionaires and a few billionaires to the world. This time Bitcoin has got the backing of ICE markets, TD Ameritrade, Fidelity, and other major institutions on board.
Mainstream Markets Are Bullish On Bitcoin
The last Bull run was fueled by mere speculation, however the scenario in 2019 are way different than what it was in 2019. Now there are more number of people who are aware of what Bitcoin Is and what it brings to the table. It is not just an internet phenomenon only meant for nerds.
The number of vendors accepting Bitcoin online and even offline has surged to a great extent. It is because of Bitcoin that every major firm is investing in the crypto space in one way or the other. Be it Twitter CEO Jack Dorsey's Square payment app which uses Bitcoin or Facebook‘s upcoming stablecoin Libra. In this span of two years, Bitcoin has turned the bigger naysayers into a believer.
Mainstream Markets are at an all-time-high, while demand for Bitcoin and crypto related financial products are soaring. Thus the next bull run would not only be phenomenal but it would surprise even the biggest of fans.
Socialism Is Taking Over
People have come around to realize that their authoritarian governments have been screwing them for long, and they are realizing it for good, by rejecting their policies only centered around rich and powerful. The rigid monetary policies is being abandoned in favor of Bitcoin.
Be it nations like Iran and Turkey where the governments are devaluing their currency at will pushing people toward Bitcoin or countries like Venezuela where even after strict US trade sanctions and an economy devastated by hyperinflation, Bitcoin came as a sole savior.
Those who called Bitcoin a bubble and called for it's doom are probable investing themselves just like JP Morgan.
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