It is April 2019 and Bitcoin sits at an outstanding price of $5600 per BTC. Its market capitalization is almost reaching 100 billion dollars.
BTC is still seeing above 1 per cent increases in value as of the week of April 15.
How did it get back here?
While there was much doom and gloom predicted for the cryptocurrency after its previous crash in 2018.
Article after article predicting the end of the digital wallet era, crypto and especially Bitcoin have pulled through to make it past every marker of doubt.
While many are speculating how the currency go to its current height, in the end it is all just that, speculation.
However, here are three of the best reasons Bitcoin is thriving and is continuing its non-stop climb as the number one valued cryptocurrency.
1. The changing of relationship with the established banking sector.
The Financial sector has had a tumultuous relationship with the world of crypto, for many years, the financial sector was full of skepticism in the longevity of cryptocurrencies.
For some time, Ripple was the major digital token, distinguished, by its direct connection to the established financial services sector.
Things changed in February of 2019 when J.P. Morgan Chase, the biggest bank in the United States by assets, announced it was creating its own cryptocurrency to challenge Ripple’s XRP.
This was major news that sent shock-waves around the world of blockchain and crypto.
J.P. Morgan Chase launching its own cryptocurrency equates to the acknowledgement of the threat traditional banking faces from blockchain and decentralized systems.
One of the biggest boons to the value of that announcement was that J.P. Morgan’s project is going to be a stablecoin, pegged to the U.S dollar and the value it currently holds around the world.
2. Social Media, Messaging and Cryptocurrency.
Nathaniel Popper, a tech reporter at the New York Times, tweeted Monday April 8 that sources have said Facebook is targeting “big sums, (as much as one billion) from venture capitalists to support their stablecoin effort.
In December 2018 it was revealed that Facebook has been developing its own stablecoin for money transfer over WhatsApp, this is very similar to what is being put out by Pavel Durov and Telegram.
Facebook and the Telegram both seek to put out their products before the end of 2019, with the former stating the first half 2019 as its target and the latter aiming for a deadline of October 31.
Telegram had an incredible initial coin offering, where in two rounds they received $850 million dollars in each round, surpassing their target goal by half a billion dollars.
Barclays analyst, Ross Sandler estimated that Facebook’s project could yield amounts upwards of 19 billion by 2021.
Crypto analyst Alex Sofpel from crypto platform, Monfex, predicts that the GRAM token could generate four billion dollars (USD) in revenue for Telegram by 2022.
While the Russian media outlet, The Bell reported that experts have placed that figure as high at 29.5 billion by the end of 2019.
3. Overbought? Golden-cross?
It shouldn’t come as a surprise to many, but Bitcoin is at its most overbought since December of 2017.
This is the same level it was at when it hit its all-time high.
Even though data shows the coin is overbought, the market continues to hold on to its gains. Analysts have tried to explain this with low volatility.
The peak of the move happened exactly as the golden-cross was occurring.
MagicPoopCannon (tradingview influencer), describes a comparison:
The breakout above the 200 EMA in 2015 & the breakout above the 200 EMA on the current chart.
A couple key things to note about this move:
- Price fell below major moving averages, including the 50 MA and the 200 MA.
- The move retraced almost all the way to the 786, but stabilized on the 61.8% retrace.
- Price hadn't tested the weekly 50 EMA for 241 days.
- The RSI reached slightly over 80.
“The market got so compressed, volatility was so low, it just went poof! It broke out. It was released from the cage,”
Bloomberg Intelligence analyst Mike McGlone told the newswire.
“Now it’s a question of duration and I suspect when you have such a massive bubble, you’ll always have an overhang of people who need to sell.”
What’s the Future?
There is no real way to know if Bitcoin is truly seeing a revival and bull run of the days of 2017, but there are good reasons beyond what we listed as to why the market will keep growing.
Names such as, Tesla’s CEO Elon Musk and Twitter’s CEO Jack Dorsey have weighed in on Bitcoin with the latter saying that he believes Bitcoin will “probably” become the internet’s “native currency.”
However, it is worth noting that both CEOs are still staying away from cryptocurrency at current state.
The next move for Bitcoin cryptocurrencies is yet unclear.
BUT! The integration of crypto into social media, online shopping, and its overall ease of use with the end consumer will be important pieces in continuing the bull run far into 2019 and beyond into 2020.