What’s Causing the Price of Bitcoin to Pump to $11,000 BTC/USD in This Latest Rally?
- Not retails rather institutions are playing a part in this surge
- Millennials driving BTC up with the “Obnoxious-Twitter-Millennial-Index” (OTMI) registering extreme FOMO.
- BTC’s potential SoV usage in Asia
The leading cryptocurrency is surging like crazy in the past few weeks. This all started in April where we took over $5k level. Then we had the month of 60 percent gains where we broke one level after another. Now, we have entered June and things are only looking better as we broke through the FOMO level at $10,000.
Yesterday, we surged to a new high of 2019 at $11,200 that was last hit in March 2018. Currently, BTC/USD is trading at $10,646 with 24 hours loss of 2.73 percent.
The latest bout of surge we started experiencing in mid-June, with 7 days change in Bitcoin about 18 percent.
But what exactly is behind this pump?
Retails don’t seem to be behind this surge as the indicators like tweets that reflect the retail investment are still at low levels that is early 2017.
So, if not retail then what? Institutions?
Yes, one of the factors behind this is certainly the institutions as we reported recently that the open interest in Bitcoin futures is making new records. CME bitcoin futures total open interest climbed to an all-time high a couple of days back with $273mln notional open.
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Bitcoin Price Driven by Millennials & its usage as SoV
Back in February, a new eToro survey revealed that 43 percent of millennial online traders have more trust in cryptocurrency exchanges than the US stock market. On the contrary, Gen X feels the opposite.
It makes sense that Millennials like Bitcoin most:
1) found their way through 2008 crisis as young adults
2) grew up with P2P (BitTorrent, Limewire)
3) digitally native & familiar with open source (Linux, Wikipedia)
5) first investments in zero interest rate environment https://t.co/bQQLmwFk0u
— Michiel Lescrauwaet (@MLescrauwaet) April 30, 2019
Then in April, this year poll conducted by Blockchain Capital stated that people under the age of 35 are the real champions of Bitcoin.
The propensity to buy bitcoin is higher among the millennials that increase since the bull market in 2017. Source: Spencer Bogart’s Medium post
Moreover, as shared by veteran trader, Peter Brandt, the“ Obnoxious Twitter Millennial Index” is also registering extreme FOMO.
The "Obnoxious-Twitter-Millennial-Index" (OTMI) is registering extreme FOMO. That is always a sign to consider taking some money off the table. pic.twitter.com/t0t1NVo3Ys
— Peter Brandt (@PeterLBrandt) June 22, 2019
Another reason behind Bitcoin rise could also be attributed to Bitcoin’s use as an actual Store of Value.
An instance for the same has been Hong Kong that during the protest against controversial extradition law have Bitcoin price on a premium of $75 to $160.
The US is already having a trade war with China and is now saying that it will impose “major” additional sanctions on Iran as President Donald Trump said, “We're putting additional sanctions on. In [some] cases we are moving rapidly.”
Gradual institutional buying with spurts of buying from Asia and Latin America to hedge weak currencies and protect wealth against tariffs and capital controls. https://t.co/HjV96gS2hK
— Ari Paul ⛓️ (@AriDavidPaul) June 22, 2019
Bitcoin’s price is $57,388.24 BTC/USD exchange rate today. The real-time BTC market cap of $1.07 Trillion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $26.78 Billion and live coin value change of BTC -0.39 in the last 24 hours.