Why is the Bitcoin rate growing? 10 factors stimulating a bullish trend on a cryptobank

It seems that May 2019 for the cryptocurrency market started well. The rise in prices for Bitcoin (BTC) was noted at 48% per month, its dominance reached the level of December 2017 (almost 60%). In general, analysts are very positive about the cryptocurrency market.

There are at least 10 possible reasons that explain this bullish trend and can tell why bitcoin (BTC) is growing so fast. Despite the rise and rebounds of recent weeks, the number one cryptocurrency in the world does not seem to plan to stop.

Altcoins are losing ground in favor of Bitcoin (BTC) , which does not respond to a decline in response to problems with Bitfinex, Binance hacking and the fears of small investors.

Fidelity Investments has prepared assets of $ 2.4 trillion for Bitcoin trading (BTC)

A few days ago, the news was published , according to which the Boston company Fidelity Investments, which provides financial services, is ready to offer a platform for over-the-counter Bitcoin trading (BTC).

In this case, this is not about retail investors, but about institutional ones, aimed at entering the crypto sector and able to change the price of Bitcoin (BTC) and other cryptocurrencies.

Currently we are talking about adding only Bitcoins (BTC) to the platform, and not about ethereum (ETH), however in the future other cryptocurrencies may be added to the trading platform. This is one of the obvious reasons why bitcoin (BTC) is growing so powerfully.

Hulving Bitcoin (BTC)

We should not forget about reducing the remuneration for a bitcoin block by half , during which the number of bitcoins (BTC), “created” and earned by miners , will be halved. At the time Bitcoin was created (BTC) in 2009, miners received 50 BTC as compensation for block confirmation.

In 2012, this number was reduced by half to 25 BTC, in 2016 – another two times to 12.5.

Bitcoin graph (BTC) shows its value in relation to the previous halving. On the right is a scale that reflects the color depending on how many months are left until the next double reduction in remuneration.

It is easy to see that in the months preceding this phenomenon, there was always a bullish trend, which led to a noticeable increase in the price of BTC.

The presence of FOMO, which requires caution.

The term FOMO (fear of missing) means the fear of missing a good opportunity. In connection with the sudden May increase in the cost of bitcoin (BTC), many wonder if they have missed the opportunity to “jump into the departing train”.

However, many investors open positions, as evidenced by the increase in volume recorded in the last period. Compared to three weeks earlier, it almost tripled:

When prices in the market rise or fall sharply, which is typical of cryptocurrency, investors act under any circumstances. In the case of the growth of the main cryptocurrency, of course, the excitement among speculators and traders was huge.

To date, Bitcoin (BTC) has crossed the $ 8,000 level, with many analysts convinced that the rise will continue. This move will cause even more FOMO among users who will start thinking about whether to buy an asset at the current price.

Those who managed to enter the market a few weeks ago have already made a profit; those who have not done so should evaluate whether it is really worth it. Cryptocurrencies are extremely volatile, so losses can be very serious.

Technical analysis of the cryptocurrency market is positive

Regardless of whether or not to believe in fundamental and technical analysis , there are several aspects to consider. Thomas Lee, an analyst at Fundstrat Global Advisors, expressed his opinion, saying that BTC will be the main growth hero in 2020.

He added that there are several indicators that show that a new price record is very likely. He also noted that his company Fundstrat has collected 11 signals that can explain this bullish trend. In addition, the company believes that the bear market in 2018 is over.

Digital currencies become mainstream

Fidelity Investments will soon begin to engage in over-the-counter Bitcoin trading , in December of last year TD Ameritrade introduced futures on BTC, and eTrade is preparing to enable Bitcoin trading on its platform.

Rumor has it that eBay may start accepting cryptocurrencies as a payment method, and Bakkt began testing bitcoin futures with launch plans in July.

Smaller services each day introduce cryptocurrencies as a means of payment, which indicates a slow but steady acceptance.

FUD does not affect cryptophone

FUD means fear, insecurity, doubt, in this case it is about the fact that someone is trying to convince other people to sell cryptocurrency, without giving sufficient justification.

The main discussions of the last weeks were mainly related to market prices, however there were other important events that need to be considered.

Along with a total ban, governments of some countries are studying the topic of Bitcoin (BTC) and cryptocurrencies, while regulators are still working to make a decision.

The Bakkt project has not yet been launched, but yesterday's news of the start in July is encouraging. Bitcoin (BTC) is not falling, despite attempts to underestimate its utility and core technology. For many crypto enthusiasts this is a good sign, they believe that the market has become more mature and the worst is over.

What happens to altcoins and why is BTC dominating?

A study conducted by BitMex and published on May 13 shows how the ICO market (the initial supply of coins) collapsed more than 97% in just one year, showing a poor return on investment (return on investment).

This means that the Altcoins could not impress the crypto community with their modest achievements.

“The ICO experiment is over. Virtually no one has created a useful and original product. Even Ethereum, which I like as a scientific experiment, did not meet expectations and is about to pass a dangerous phase, during which an untested experimental consensus algorithm will be created.

People understand that Bitcoin is a much bigger idea than all the “fabulous” blockchains that have attracted finance over the past two years , ”one Reddit user rightly noted.

Despite the fact that currently the dominance of Bitcoin exceeds 60%, we can not say that the Altcoins are dead, not to mention the fact that they all failed. Suffice it to recall the successes of the BNB token in less than 10 months.

Bitcoin and Bitfinex: new tools appeared

Some users believe that the increase in prices for BTC may be indirectly caused by the scandal with the Bitfinex exchange cryptocurrency. New York Attorney General James Laetitia recently accused Bitfinex of using $ 700 million from Tether to cover a shortfall of $ 850 million.

Here are some of the most popular comments on the Internet:

"I think Bitcoin will grow, because in the situation with Bitfinex … they will most likely have many problems with processing withdrawal requests."

“I think many people buy bitcoin, leaving Tether. If something goes wrong with Bitfinex, there will be a real crash. ”

It is possible that many have moved from Tether to BTC, although Bitfinex's positions are still strong, since in 10 days the platform managed to attract $ 1 billion.

Hacking Binance has not brought down the price of cryptocurrency number 1

On May 8, 2019, the Binance cryptocurrency exchange was hacked , losing about 7,000 bitcoins (at that time $ 40 million).

After that, within half an hour, Bitcoin lost 3.2%, the rest of the market also reacted negatively and first of all to BNB tokens. But after a while, the bull trend reappeared.

Experienced traders took advantage of this decline to return to the game, because then the market lost about $ 5 billion. Binance blocked the withdrawal of funds and deposits (they will be available today), but even this news could not seriously affect the price of cryptocurrency.

Consensus and SEC Solution

The Consensus conference, a global event that brings together the world's leading experts in the field of blockchain and cryptocurrencies, is taking place in New York. This is the time for important announcements and news that can bring even more positive.

Currently, attention is focused on the SEC. It is known that the Commission has repeatedly postponed a decision on a Bitcoin ETF , soon all legal deadlines will be exhausted.

Publication date 15/05/2019
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