Three Driving Forces For Bitcoin Price Surpassing $9,000 BTC/USD After Bottoming At $3,200
Bitcoin has recently surged to a 13 month high at $9,400. People are speculating as to why this is happening now. It is obviously a range of factors that contribute to this, but we have pinned down top 3 reasons for this current rally.
Institutions Are Interested
Over the past several years, crypto-analysts have indicated the inflow of capital from institutional investors as a potential factor for the medium to long term growth of the asset class. However, they were always hesitant to enter for a variety of reasons including regulatory uncertainty, volatility amongst others.
However, recently, investment firms including Grayscale, which oversee more than $2 billion in assets under management, have shown a remarkable increase in the inflow of capital from institutions. While rigorously regulated platforms like CME have seen record volumes.
A team from Grayscale says:
“Institutional investors comprised the highest percentage of total demand for Grayscale products in the first quarter (73%). This was also consistent with their share of inflows over the trailing twelve months (73%). As we have mentioned in previous reports, many institutional investors may view the current drawdown as an attractive entry point to add to their core positions in digital assets.”
Facebook’s Crypto To Be Released
Facebook has planned the release of the whitepaper tomorrow detailing its plans for a cryptocurrency, believed to be called Libra, which will serve as the core payment technology used across its online platforms. It is apparently backed by payment giants like Visa, Mastercard PayPal, and Stripe.
With numerous regulatory obstacles to manage, they don’t plan to be launching it until 2020. It has been considered that Facebook Libra could also be used as a payment method outside of Facebook’s platforms and products.
Samuel Leach, Director of Samuel & Co. Trading says:
“With the tech giant making a leap into the crypto space, I believe we could see Bitcoin surge as high as $12,000 over the coming week.”
Litecoin’s Halving Approaching
The closer we get to Litecoin halving this coming August, the higher the likelihood that Litecoin’s recent rally is nearing completion. But also the closer we get, the more bullish the market becomes as investors see such enormous gains being brought by the digital silver equivalent.
Litecoin has already rallied over 353% in 2019 and many analysts believe this to be the reason for adding fuel to the current rally.