Bitcoin

Bitcoin crosses $9400 – these are the reasons

Sentiments play a large role in driving the price of any asset and this could be the reason why Bitcoin is leading itself to a pre-bull run. After the covid-19 crash, Bitcoin is redeeming itself and registering high growths in its price movements. The Bitcoin Price (BTC) price took an upward swing and rose from $7,700 to $9,500 in one night. The increase of 23% was seen in less than 24 hours. Analysts from the cryptocurrency industry have attributed this increase to three main factors are:

  • A record-breaking spot exchange volume for Bitcoin
  • A major escape recorded from the historical resistance level
  • A perceptible increase in the institutional demand

Spot exchanges are triggered by genuine retail demand generated and they usually come in the accumulation phase. Compared to what the past history has been like, Bitcoin’s recent price rise has mainly been taken on by spot volumes. Hence, the volume that hails from spot exchanges are not artificially generated by leverage or borrowed capital but with authentic demand and great sentiments surrounding the asset.

The Open Interest of Bitcoin futures on BitMex is the total amount of both short and long contracts that are open in the market. This was below $500 million.  The increase was organic as the prospects of it remained low on futures exchange while spot platforms registered a buoyant jump.

The second reason was highlighted by Benjamin Blunts who ascertained that the Bitcoin price sped past the major historical resistance levels the moment it raced $8000. The 100 and 200-day daily moving averages, as well as the 0.618 Fibonacci retracement levels, were also exceeded concurrently. These are the critical resistance levels which when surpassed points towards a stronger upside that is awaited. Therefore the march towards $9500 was rapid.

Referring to the quarterly report of Grayscale it was highlighted that 88% of the bitcoin investments came from different institutions. The asset under management of the Grayscale Bitcoin touched $ 3 billion. 

Source – Grayscale

The capital inflow has not been unchecked, but it has rather been a very gradual influx of capital in Grayscale products. The trend has been recorded since January this year which only implies that right from the first quarter of 2020, these activities are taking place.

These three reasons are considered to be the biggest reasons for the massive upturn in the bitcoin prospects.

Image Source – Photo by Crypto Crow from Pexels

BTC price reclaims its position after Corona crash

The CoronaVirus scare and the bleak prospects affected Bitcoin’s price movements in the month of March when the infections were soaring high. After experiencing a major crash in prices, Bitcoin has been steadily moving up the price charts ascertaining its pre-bull run. Bitcoin Price (BTC) hit $8,000 on April 29th which together contributed to a power-packed buoyant market for Bitcoin.

After a near 7-week sabbatical from a good run, BTC/USD showed edging past the $8,000 slab which is a complete reversal from Bitcoin’s crash in mid-March. The march crash was mainly attributed to the dampened sentiments and an uncertain future after the covid-19 pandemic struck hard. The famed cryptocurrency dropped 60% in a day and reach an all-time 15-month low at $3,600. 

Source: CoinMarketCap

The above chart highlights the increase in both the market cap as well as BTC directing our attention towards the new high it has achieved in a single day. With highs on exchange Bitstamp of $8013, it is a known fact that Bitcoin and crypto markets, in general, are highly volatile. BTC will still take some time before it firmly establishes its foothold at a dominant price. With BTC trying to establish grounds, its next target lies reaching $8500 as per Keith Wareing, an analyst with Cointelegraph.

In the current year, while BTC has been trying to reconcile its position, it has managed to beat Dollar and stocks. With an average of 9.5%, it is only a little behind Gold’s stellar performance at 12.1%.

With Bitcoin’s third block reward halving on the anvil in just 12 days, the enthusiasm surrounding the Bitcoin price continues to soar high. The halving is considered to drop inflation rates to 1.8% which will also halve the supply of new bitcoins that are released once every ten minutes. The much-awaited halving event is stated to raise a lot of interest in all sections. Media also believes that the halving will produce a set of new Bitcoin Millionaires!

Although the halving event has mixed reactions about how it might affect the price, BTC is translating the positive sentiments on the exchange with motivating price rise. 

The latest updated price of Bitcoin crossed $9,200, let us know if you think the bulls are back?

Tim Draper and his massive prediction for BTC

The virtual Blockchain week is underway with many blockchain enthusiasts who participated in the event that will take place till May 2’nd. Tim Draper, an agile Blockchain follower, and a much-famed venture capitalist spoke about his trust in Bitcoin price prediction and that he believes its price will climb up to a six-figure. This is not the first time that Tim Draper is making such bold claims. In 2018, He made an equally bold statement that Bitcoin Price (BTC) would touch $250,000 by the end of 2022 or early 2023. Even in the virtual conference, he is sticking to his claims and mentions that he is self-assured that BTC will touch those figures.

But, all the heavy claims are not made without deep reasoning. Tim Draper believes that the huge Covid-19 stimulus package that the US government is funding will certainly cheapen or cripple the value of Dollar which will cause a movement of people towards crypto. Bitcoin being the most commonly used crypto will see mass adoption compared to the others. All this he believes will take place around the same time frame as he had mentioned earlier. 

Draper in his address also talked about a company called OpenNode. It is a company that provides a sturdy platform that blends eCommerce and retail plug-in solutions, an easy payment infrastructure that will allow for instant settlements and newer payment models. Tim Draper has invested $1.25 million in the company and informed that OpenNode is working on building a Bitcoin payment gateway on the Lightning network for faster Bitcoin settlements.

Draper believes that the conventional models of transactions including the credit cards might go down as these faster and much more competitive modes of transactions will come into being. He is very confident that this initiative will grab a sizeable market share in a similar manner MasterCard and Visa took from American express. His prediction is considered fierce compared to what John McAfee as he jokingly promised to eat a raw egg if his prediction doesn’t materialize. With growing trends already favoring Bitcoin Price, it will be worth the wait to see whether Bitcoin truly lives up to the claims made for it.

Image Source – SiliconValley.com

Dave the Wave predicts Cheerful Times for Bitcoin

Popularly known as “Dave the Wave” and regarded as the key strategist of the crypto industry, it had made a prediction way back in 2019 about the metamorphic downturn of the Bitcoin market. After his loudly pronounced prediction, bitcoin changed course towards the south and fell to $6425 from a high $11,600. The popular analyst has carved a name in the industry and with predictions made July last year, the weightage of the statements has increased manifold.

After the trend went down, he now predicts that Bitcoin’s hovering rates and the extremely volatile situation will decrease especially in the next ten years. He also has predicted that Bitcoin will experience extreme prosperity followed by a period of decline. According to his data-driven evaluation, the price of bitcoin can hit $110,000 by the end of 2022 after which it will crash massively to $30,000 by the end of 2025. But after the crash, a reversal in trends and a recovery is on the cards which will take Bitcoin to a new high. By 2029, ‘Dave the Wave’ bets on Bitcoin reaching $400,000 which will be huge.

In an official tweet, Dave the Wave had suggested that Bitcoin could travel up to $500,000 and by the end of the decade, it will trade between an interval ranging from $200,000 to $500,000. Bitcoin had experienced quite a few blowups owing to its volatility. Even in the pandemic situation, Bitcoin had indeed suffered a major downturn, but as per the predictions, things could be finally looking up. 

Many people make predictions about bitcoin, but considering the past history that the wave has with predictions adds to his credentials. The Bitcoin market can be studied with much detail but it is also important to understand that one cannot predict it precisely. Predictions are not easy in such situations but Dave’s predictions have always been based on careful analysis and use of past data.

At present after its crash to the bottom after COVID-19 struck, things have already started to look up with Bitcoin is crossing the $7200 level. Dave the Wave suggests that if bitcoin has to reach a zenith, it has to undergo the boom and bust cycle. Only time can now establish the accuracy of the predictions.

Image Source – Bitcoin Exchange Guide

U-Turn For Chinese Bitcoin (BTC) Miners

China may be tough on Cryptocurrency trading; however, Bitcoin mining is seen to be a significant operation amongst Chinese cryptocurrency enthusiasts. In the last few months, BTC miners have been slowly fading off in China due to the bear markets, even going to the extreme of selling off their mining equipment by the kilos.

According to 8btc, a Chinese blockchain and crypto news source,  miners in China have been stocking up on Application-Specific Integrated Circuit (ASIC) chips. The main reason cited is the anticipation of the Bitcoin halving which is expected in May 2020.

Current Bitcoin Mining Profitability

As of now, Bitcoin mining may have almost zero profits. However, as the halving gets closer, it is expected to rise dramatically.

Bitcoin’s halving is expected to reduce inflation by 50%, and according to past statistics, Bitcoin will rise in price. Currently, miners receive 12.5 Bitcoins per block mined, and this will further drop to 6.25 Bitcoins in the next halving.

Companies such as Bitmain has faced a severe turn of events due to the bear markets in Cryptocurrency, with significant downsizing and delays in their IPO. However, with things picking up, Bitmain may start to walk.

Chinese Bitcoin Miners Getting Creative

The Chinese Bitcoin miners are doing all they can to reduce the costs of mining. From negotiating the best rates of buying used mining equipment to making deals with hydroelectric plants and mining farms.

Hydroelectric plants are bound to gain excess electricity generated thanks to a heavy rainy season this year.

It’s pretty clear bull season is around the corner, and both Cryptocurrency investors and miners are getting ready.  Mining equipment makers, on the other hand, will not profit as much as second-hand mining equipment are rising in demand.

Subscribe to our newsletter The Raven’s Dispatch!

Interested in more crypto content? Check out Financial Giant SBI to Launch a New Crypto Exchange and MDW Partners With Bitfury and Longenesis