Three Imminent Crypto Asset Catalysts to Help Bitcoin’s USD Value Grow In The Near Future
Bitcoin (BTC) and digital currencies didn’t have a good week. After reaching its highest point in several months, Bitcoin fell down to $5,275 after the controversial news regarding Bitfinex and Tether (USDT) spread. However, there are experts that believe that Bitcoin is going to be reaching new highs in the future.
Bitcoin Could Start Growing In The Future
Crypto enthusiasts are expecting Bitcoin to start moving up again. Of course, this is something that is going to take time and that will not happen from one day to the other.
However, Thomas Lee, the co-founder of Fundstrat Global, revealed that the most popular digital asset has entered a new bull market that could end up in new all-time highs in 2020. During a conversation with CNBC, Tom Lee said that there are three signs that show that crypto spring has sprung.
— CNBC Futures Now (@CNBCFuturesNow) April 25, 2019
The first thing that Thomas Lee said is related to the fact that on-chain transaction volumes are growing. A year ago, transaction volumes on the Bitcoin network were reaching its lowest point in more than a year. Nonetheless, on-chain transactions have already surpassed 400,000k in the last few days, the same level registered during the bull market of 2017.
The second thing is related to technical indicators of Bitcoin’s price. The main indicator is the BTC/USD price moving above the 200-day moving average. This is a very positive sign. The digital currency was able to surpass that level after 13 months below it.
Furthermore, cryptocurrency trading volumes are also growing as well. In 2018, as digital currencies fell, trading volumes dropped substantially. Things are now different and trading volumes started growing once again. Although there are several reports that show that there is a lot of wash trading in the crypto space, we can assume that it also happened in the past and that real trading volume is growing.
Finally, the third thing that he mentioned is that his firm made a survey of over-the-counter (OTC) brokers in order to understand how the crypto trading activity is evolving in the space. Lee said that brokers are seeing between 60% and 70% increase in activity levels. Mr. Lee believes that these trading volumes are “taking off.”
Lee went on explaining that cryptocurrencies are also growing in other countries with financial problems rather than just in the United States. About it, he commented:
“It’s really important for that to take place in the U.S. for adoption because there’s a really well-established financial system. You have to remember that crypto is probably 70% a story outside the U.S.”
There are countries such as Venezuela, where there is a hyperinflationary crisis taking place and where people are using the digital asset to receive funds from their family abroad, to store funds or just to purchase things that would otherwise not be able to buy with the local fiat currency.
At the time of writing, Bitcoin is being traded close to $5275. It also has a market capitalization of $93 billion.