Was the Bitcoin Price Rise Triggered By Numerous Crypto Announcements at Consensus 2019
The cryptocurrency market has been bullish ever since the start of the year 2019. However, most of the gains until March were neutralized immediately after the price rally. This prompted many analysts to predict that the bull run would only arrive towards the end of the year.
After months of slow price movement, the crypto market finally saw a surge of green starting from April, which saw Bitcoin and major altcoins make double-digit gains, and most importantly solidify those gains. The reason behind April surge was attributed to whale manipulation, speculations about ETF approval and many other reasons.
The April surge was followed by speculations of price corrections and market rebound, however, the month of May proved even bigger for the crypto space with prices of Bitcoin moving past $6k, $7k and $8k in a matter of a couple of weeks. However, the reason for the surge in May was not known either. In order to know the catalyst which prompted such bullish behavior in the market, 10 fintech experts were contacted to give their views and reasons behind the recent green in the market.
Consensus 2019 Was a Prime Reason For the Surge
Out of the 10 fintech experts, 8 of them think that the surge in prices was triggered due to the number of crypto-related projects and developments announced during Consensus 2019 in New York City. The most important ones being Bakkt and Microsoft.
Sarah Bergstrand, BitBull Capital chief operating officer said,
“The past three years, a few weeks before Blockchain Week, we have seen the rising of prices and of the overall market cap, especially during the three-day Consensus conference. It also tends to fall as soon as the conference is over.”
Ben Ritchie, Digital Capital Management chief operating officer says,
“The rise in the price of Bitcoin on the surface appears to be a result of the release of positive news flowing from Consensus this year. However, there may be some additional underlying factors. These include the stability of Bitfinex and the USDT following their recent $850 million raise in 10 days, and Binance looking to buy back their BTC position following the hack of 7,074 BTC. There is also increased use of algorithmic trading pushing volumes significantly higher and fueling confidence – and, with it, opportunity.”
The US-Chian Trade War and Impending Bitcoin Halving Are Other Prominent Reasons For the Bullish Trends
Apart from the consensus theory which seems to be legitimate at this point, another prominent reason for the uprise includes the US-China trade war as well as the impending halving of the Bitcoin block reward scheduled for 2020.
It has been a common occurrence in the history of the crypto space that the prices start to climb up a year before the actual halving takes place. The first halving saw a massive 40,000 percent pump in prices since Bitcoin was fairly new and was priced around a few dollars. The second Bitcoin halving resulted in a 1000 percent pump which was not as dramatic as the first rise, but still quite significant.
Arca chief investment officer Jeff Dorman suggests that there is not any specific reason for the uprise, but a combination of various factors, he explains,
“It’s a mosaic theory. Pent-up demand spilled out because of Fidelity’s new platform, China’s trade wars, short liquidations and Bitfinex’s forced buying from people who bought BTC with USDT in order to get out of USDT.”
Among the ten panelists contacted for their views on the recent surge, three of them believe that the interest of traditional players into the crypto space has a major part in taking the prices of Bitcoin and altcoins higher.
Bitcoin Price Predictions
The panelist was also asked about their price predictions for Bitcoin by June 1st, and the average price for the Bitcoin taking in all the predictions comes at around $7,543. Most of the experts also predicted the price towards the end of the year which came around $9,659 on an average.
Among the panelists, Dorman declined to predict any price saying,
“Making short-term price predictions isn’t practical. Making probability-weighted investment decisions is better. And right now, it is a good risk–a reward to continue to accumulate BTC. One BTC will always equal 1 BTC. Pricing BTC in terms of USD is dependent on a lot of things, including the inevitable weakness of the USD caused by unsustainable debt and inflation.”
Only 4 of the panelist believed that Bitcoin would surpass its all-time high of $20,000 by the end of this year. 5 out of the 10 panelists also agreed upon the chances of a crash in market prices just like the one which followed the December 2017 peak price.
Price predictions and market behavior is two near-impossible tasks in the crypto space. Take the 2018 example where several trade gurus and analysts suggested that the prices would double and even triple after the 2017 peak, however, they had to eat their own words, as 2018 marked the longest crypto winter cutting more than 80% of the total crypto market capitalization.
There is a famous saying that, if you want to make a fool out of yourselves, the best way is to predict the prices of Bitcoin.