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Bitcoin [BTC] breaks $5000 mark; anchors massive bull-run with 15% surge under 2 hours

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Bitcoin [BTC] as it so often does, anchored a massive bullish swing for the market. The collective market pumped to levels not seen since the November 2018 bear market shaved over $100 billion in less than a month. Litecoin [LTC], EOS [EOS], Tron [TRX], Monero [XMR], and IOTA [MIOTA] saw notable gains, but Bitcoin was the highest gainer in the top-20.

Reaffirming its position as the king coin, Bitcoin’s massive pump saw its dominance in the market rise. The top cryptocurrency had seen a significant dip in its hold over the market, as it has been slipping since the beginning of the year. In early-January 2019, Bitcoin’s dominance stood at over 54 percent and prior to the immediate pump, was close to dropping below half.

Many analysts believed that 2019 was the year that the Altcoins would edge the king coin in market dominance and institutional investors would chide Bitcoin for other multi-faceted options. Mati Greenspan, the senior market analyst at eToro was a proponent of this camp, claiming that the altcoin season had arrived.

Several analysts opined that a BTC rise was on the horizon, given the institutional embrace and the consistent price rise over the past few weeks. After Bitcoin re-entered the $4,000 bracket at the close of March 2019, a consistent run was expected and the coin delivered. Bitcoin broke the $4,100 and the $4,200 barrier, before surging to even greater heights.

The price of the top cryptocurrency broke its immediate resistance level of $4,250 and was well over $4,800, at press time. BitMEX, marked the price of the coin at over $5,000, while Binance pegged the coin’s price at over $4,750. The market cap of the coin stood at over $80 billion, looking to break the $100 billion mark which it breached over four months ago.



Source: TradingView

FCoin took the top-spot in terms of exchange dominance with 12.1 percent of the total market in the trading pair BTC/USDT. BitMEX, held 11.79 percent in the derivatives trading pair XBT/USD.

Additionally, a report by Messari stated that of all the PoW coins in the market, Bitcoin and Ethereum stood out in terms of their security against potential 51 percent attacks. The report also cited coins like Monero, Dash [DASH], and Zcash [ZEC], which are also resolute to such attacks. This report presumably added to the trust investors had in the currency that held over 50 percent of the market.





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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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