Bitcoin, which had been around $ 4,000 per bit earlier this year, has been steadily rising since April and has soared to about $ 11,000 per bit now. What is the reason that the bitcoin, which failed to decline throughout the year due to panic cells last year, has been on the rise since April this year?
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Global economic unrest caused by the US-China trade conflict
Many cryptocunrrency analysts say bitcoin is benefiting from reflexes as US and Chinese trade tensions deepen. Bitcoin is classified as risky asset because price fluctuation is very serious, but price movement is similar to gold which is safe asset.
Generally, risky assets such as stocks plummet in the face of global economic crisis, but bit coin prices often rise in a crisis. Whenever there is a global economic crisis that usually acts as a bad news in the stock market, such as the brexit, the nuclear crisis of North Korea, the bitcoin is convincing enough to see the past that has soared. Moreover, recently, the conflict between the United States and Iran has heightened, and it seems to empower the rise of bitcoin.
Rearranging after adjusting the bottom (Bitcoin 72 weeks peak renewal theory)
Already, many cryptocurrency analysts have analyzed that when they are on a downward slide last year, they will hit the bottom of this year and start to rise after the second quarter. It is a natural rebound after a long decline and adjustment.
Joseph Young, known for his cryptocurrency analysts last December when peaking declining bitcoin, beat Cohen’s peak every 72 weeks, with a peak of $ 20,000 in December 2017, 72 weeks later, We expected April to be the lowest point, and after that, we expect to see a long upward trend.
Facebook, JP Morgan and other large global companies to accelerate the entry into the currency market
On June 18, Facebook unveiled its “Libra Project” and announced its entry into the cryptocurrency business. Libra project partners include the world’s most influential global companies such as Visa, Ebay, Uber, Master Card, and PayPal, I have focused my attention on. As Facebook is a giant social platform with more than 2.3 billion users worldwide, the expectation that many users of Facebook will naturally flow into the money market has been positive for the rise in bitcoin.
In addition to Facebook, JP Morgan, a major US investment bank and Wall Street representative, also announced plans to release its JPM coin, a self-encrypting technology earlier this year. JP Morgan’s CEO, Jamie Daiman, was cryptocurrency pessimist who said “Bitcoin is fraud” only two years ago, but since 2018 he regrets mentioning Bitcoin fraud and has since become a Bitcoin supporter. It is symbolic that the CEO of the world’s largest bank will technically recognize the cryptocurrency and issue its own cryptocurrency.
Steady flow of institutional investors
According to the “Diary Report” released in April, the amount of institutional investing in the bitcoin is increasing for four consecutive months. Institutional investors are constantly influenced by various analyzes, but the main reason is that institutional investors use cryptocurrency investment as a means of hedging (risk spreading) due to price fluctuations in bitcoins that reverse global economic indicators. It is more safe to invest in cryptocurrency than to buy stocks, bonds, etc., which are likely to decline in every global economic crisis, such as US-China trade conflicts. One of the other reasons is that the US Securities and Exchange Commission (SEC), which has responded strongly to cryptocurrency, has softened its position.
What is the outlook for the 2019 bitcoin analyzed by experts?
Most cryptocurrency experts predicted this year to be between $ 10,000 and $ 11,000, but they are already above expectations. Wei Zhou, Binance CFO, has also interviewed that it could go up to $ 40,000 if it exceeds $ 10,000. One of Wall Street’s well-known financial commentators, Max Kaiser, predicted that the cryptocurrency market would be booming, reaching $ 100,000.
However, many people in traditional financial markets still deny bit coins. Warren Buffett, CEO of Berkshire Hathaway, a leading bitcoin pessimist, says, “Bitcoin is like gambling.” Famous venture investor Jason Calacanis said, “Bitcoin is a viable technology and will cost between $ 0–500 “We have been looking forward to the dark future of Bitcoin.
The difference between optimists and pessimists about the future of Bitcoin is still widespread. Some experts say it will be extremely $ 10,000, and some experts say it will be $ 0 . So far, I have been steadily rising, but I think that one day Big Shot will come. It is a pleasure to ride the trend, but please be careful not to High point buying.
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