Why BTC Skyrocketing？

Since the beginning of 2018, Bitcoin has been in a downturn for more than a year. However, since the beginning of 2019, the trend of Bitcoin has begun to show a completely different, which is beyond the prediction of most people, many people predict that $ 6000, $ 6400, $6800 and so on. However, all broke through, and Bitcoin rushed to a high of $7,900 in just a few days, which made the crypto market boiling again.

This growth seems to make the arrival of the bull market, but such a skyrocketing also made many people puzzled. Where did the power come from? What are the deeper reasons behind this, let’s talk about the reasons why Bitcoin has continued to skyrocket since April and May.

The downturn of Bitcoin has been going on for a long time. From the high level at the end of 2017, the trend of Bitcoin has been continually fluctuating but always downtrend. However, it is obviously that Bitcoin has slowly increased since the beginning of 2019, and a very significant explosive growth since April. The chart below shows a strong pull since May, with the highest price breaking through $7,500.

Let's see the reasons:

1. Bitcoin will be halved soon

Judging from Bitcoin itself, the reduction every four years will definitely cause price changes, and each reduction will lead to a price rise.

Bitcoin halving schedule:

28 November 2012: 50 Bitcoins → 25 Bitcoins

9 July 2016: 25 Bitcoins → 12.5 Bitcoins

April or May 2020: 12.5 Bitcoins → 6.25 Bitcoins

2024: 6.25 Bitcoins → 3.125 Bitcoins

And each reduction will lead to a price rise, as shown below

It can be seen that the next halving is just about 11 months later, such heavy news will not be ignored by investors, and it is well known that the longer the investment, the greater potential benefits. So investors bought BTC one year before the fork and waiting rising.

2. The return rate has hit a new high, and the confidence in Bitcoin has increased

At the Berkshire Hathaway annual meeting, someone asked Warren Buffett about Bitcoin, and he continued to give his own conclusions: “This is a gamble. There is a lot of fraud related to it. Bitcoin does not produce any value.” He added, “It can’t do anything. It’s like a shell, it’s not an investment for me. ”

But even if Warren Buffet is still opposed, it does not prevent many traditional investors from entering the cryptocurrency market. According to Bloomberg News, Fidelity, the world’s largest asset management company, officially entered the field of investing in Bitcoin in early May, and the Bitcoin mining has been laid out.

According to relevant data, the two-year return: Standard & Poor’s 500 Index: 19.9%. Gold: 1.3%. Oil: 31%. Bitcoin: 457%. The return is so high that traditional financial predators cannot ignore.

3. The good news of ETF

In addition to the two bills on cryptocurrency discussed in the US Congress in January, the Bitcoin Futures ETF has returned. According to the US media, the SEC has received an application from the Bitcoin ETF for the third time on May 11. It is reported that the SEC doesn’t want to approve the ETF. However, because of the pass chance, it still injects a booster into the market.

4.USDT Risk

Bloomberg reported that a spokesman for the New York City Attorney General’s Office said that the Bitfinex exchange had directly misappropriated the USDT to fill the loss of $850 million, which directly caused the USDT 4% fluctuation. For an anchored cryptocurrency, a 4% fluctuation could lead to complete dishonesty in the market. Therefore, a large number of users abandoned the USDT and turned their assets into the BTC to hedge.

5. Donald Trump increased Chinese tariffs

This is also the most important news recently, and have a significant impact on the cryptocurrency market. US President Trump decided to increase Chinese tariffs from 10% to 25%. This will be devastating to China’s export industry and will have a very serious impact on the Chinese economy. Chinese stock market has therefore plunged. Some of the assets drawn from the stock market has entered the cryptocurrency market. This also promoted Bitcoin.

So, all above is the reason of this rising and Bitcoin bull market, how do you think?

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