Bitcoin price once reached over $19,000 in 2017, but dropped to $3,399 in February 2019. But it gradually rebounded since late February and started moving towards up to the right on May 10. Now it suddenly surged to $9,000 on May 27, closing gaps to $10,000.
Bitcoin price doubled just in 2 months and the value raised by 66% in May alone. The market is strongly bullish unlike sluggish movement it showed past 1 year. Let’s walkthrough the reason of the drastic price change in Bitcoin
1. Bakkt Launches Bitcoin Futures
Bakkt is the cryptocurrency exchange owned by Intercontinental Exchange(ICE), which also holds the ownership of New York Stock Exchange(NYSE). Bakkt announced the launch of Bitcoin futures in coming June that would fully adopt physical delivery with Bitcoin-only settlement, which wasn’t tried in conventionally traded Bitcoin futures. Bakkt’s Bitcoin futures setups and large investment in the instrument can create great volume of demand for Bitcoins that directly influences Bitcoin supply to the market and eventually Bitcoin price. Market experts assumed that Bakkt news has contributed in major portion to recent Bitcoin surge.
2. Global Corporate Giants Jumps in Crypto-market
Many global corporate giants who were rather introverted to cryptocurrencies have turned and started participating in crypto. Global corporate giants like JP Morgan, Starbucks, Facebook, Samsung, AT&T and Fidelity are now actively engaged in cryptocurrencies and crypto-market.
Samsung’s newest smart phone Galaxy S10 came out in market with installed cryptocurrency wallet and Decentralized Application(DApp) store. JP Morgan issued it’s own cryptocurrency JPM Coin. Facebook is reported to have had talks with major US crypto-exchanges on May 24 for issuing its own cryptocurrency. AT&T announced on May 23 to the plan to accept parents in cryptocurrencies. Fidelity, world’s largest asset managing cooperation, announced the plan to launch crypto trading platform on May 6.
Experts consider crypto-friendly movements of global corporations to be underlying factor of Bitcoin recovery.
3. Trade War between US and China
US-China Trade War is one of the hottest factors called by market experts. Trade dispute between US and China is impacting negatively to global stock market and real economy, thus driving investors to crypto-market.
Key reason for supporting this theory is that surge of Bitcoin and breakdown of US-China Trade talks align in timeframe. Barry Silbert, CEO and founder of Digital Currency Group, said in his Fortune interview :
“It’s certainly interesting that the [Bitcoin] price started its acceleration, moving up and to the right, when the trade discussions broke down.
I think [Bitcoin is] serving as a bit of a non-correlated asset.”
Some other experts analyze the circumstances as Chinese investors are pushed away from Chinese Yuan(CNY) which is under pressure from US-China Trade war and are looking at Bitcoin as safer investment.
Global giants jumping in the crypto market and US-China trade War worsening then ever, Bitcoin rally is expected to continue. Bakkt’s Bitcoin futures backed by physical delivery is likely to attract institutional investors to take part in would further push bull market for Bitcoin.
Like AT&T decision to accept payments in crypto, future for crypto-market seems positive and solid as cryptocurrencies are gradually positioning itself as a means of payments in real economy.
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