These Are the Factors that Will Push Bitcoin (BTC) Price Up
Bitcoin has been in a bear market since the beginning of the year, which has been very disappointing for several individuals and investors. Moreover, since January, there have been different attacks to cryptocurrency exchanges which helped the market to suffer important sell-offs.
But there are some factors that will help Bitcoin start to recover part of the price lost and help it grow. With many new technical developments taking place behind Bitcoin, and other regulatory frameworks that are starting to be shaped, this resilient currency will start to grow again.
Christian Ferri, President and CEO of BlockStar, commented:
“As in every technology, hacking will be painful for some in the short term; but it will be a major driver in strengthening the crypto ecosystem, making it more secure, which is key for mass adoption.”
Top 7 Factors That Could Influence BTC Price
For example, one of the new developments that are being improved are decentralized cryptocurrency exchanges. They do not hold the private keys of the users and do not control the funds they transact, reducing the possibilities of suffering hacks.
Another interesting factor will be a bigger futures market for virtual currencies. The CBOE and the CME are working in order to have more crypto-related products for their clients. Additionally, NASDAQ is also planning to launch a new futures market for bitcoin.
NASDAQ DX Exchange
Furthermore, a NASDAQ-powered crypto exchange platform, known as DX.Exchange – will be launched during this month.
New York Stock Exchange (NYSE) Trading Desk
As reported by The New York Times, ICE, the parent company of the New York Stock Exchange (NYSE), is working on an online trading platform that would allow large Wall Street investors to trade cryptos.
Goldman Sachs, another important financial institution, is offering its clients the possibility to trade Bitcoins futures through a New York desk. Goldman Sachs will be using its own money to trade BTC futures contracts on behalf of their clients.
Bitcoin developers are also working very hard to solve the scalability problems that were affecting the network in the last months. Bitcoin was able to implement the Segregated Witness solution that allows transactions to be reduced in size. This allowed the bitcoin network to have lower fees and faster payments. More than 40% of the transactions are processed using SegWit.
In the future, the Lightning Network (LN) scaling solution may be able to completely reduce all the problems related to Bitcoin’s scalability. At the moment it is being tested and developed, but in a few months it could be ready to be used.
At the moment of writing this article, Bitcoin is being traded under $6,500 dollars registering a 4,5% compared to 24 hours ago. At the same time, the total market capitalization of cryptocurrencies has retraced to $275 billion dollars.