Why is the Bitcoin (BTC) Price Going Up So Much?
It would seem the Bitcoin bulls managed to stay in control throughout Monday trading, a day when markets are particularly vulnerable to unexpected movements. After a weekend of spectacular gains, Bitcoin has continued to rise and rise, breaching $8,000 earlier today. Not only does the rally represent a 150 percent increase from the December 2018 low of $3,194 but it is also the longest period of solid gains for Bitcoin since 2013.
The Bitcoin price reached a high of $8,285 this morning before facing mild resistance and retracing to just above $8,000. However, with bullish sentiment still incredibly strong throughout the industry it will no doubt be back above $8,200 soon.
Developments driving the boom
In an interview with Bloomberg, Travis Kling, founder of crypto hedge fund Ikigai, spoke of developments that may be driving the recent bull run.
“The largest crypto gathering in the world is going on right now, Consensys, and there’s Bakkt announced their futures product is going to be up and running in July. Before then there was not a concrete date on when the Bakkt product is going to be launched,” he commented.
In addition to Bakkt, two other American financial giants, namely Fidelity Investments and E*Trade, have recently announced their plans to begin supporting cryptocurrency trading in one form or another.
Those in the know
Several Bitcoin maximalists and critics have taken to social media to make their opinions known. Thomas Lee, the co-founder of crypto firm Fundstrat, presented a poll to Twitter asking at which price point those who wished to see Bitcoin crash will likely decide to buy back in.
“At what price will see FOMO from those who gloated about 90% crash in $BTC?” he asked.
The majority of responses (45 percent) chose $10,000 as the level they believe naysayers will suddenly try to get a piece of the Bitcoin pie. Lee himself also chose $10,000, saying: “My SWAG (scientific wild-assed guess) is $10,000 is price that causes FOMO from those who saw #bitcoin as dead forever.”
Bitcoin maximalist Anthony Pompliano (@APompliano), a popular voice on Twitter and an advocate of crypto, proudly stated “THE BULLS ARE BACK!” after noting that Bitcoin has enjoyed its largest volume of all-time two days in a row.
Prominent crypto critic Nouriel Roubini, aka Dr. Doom, has been unsurprisingly quiet for someone who usually takes every opportunity to bash Bitcoin. Instead, he has chosen to simply retweet opinion pieces about blockchain technology.
Theories and analysis
As usual, wild theories regarding the price rise abounded on the Internet this weekend, citing everything from the stars aligning to assertations of manipulation. However, these are waning off now to give way for more sound technical analysis and talk of technological developments. Mati Greenspan, a senior market analyst at popular trading platform eToro, says the company has seen steadily increasing adoption through this year. “We’ve been seeing steady growth and adoption in the industry, and prices are starting to get in line with the usage of Bitcoin,” he recently stated.
The general consensus seems to indicate that this bull run is the result of increased adoption mixed in with a nice dose of FOMO buyers helping to push up the price. How far it will go, though, is another question.