Every market has that elusive level that often seems to bring together the collective community to join as one in celebration of a common goal; for Bitcoin and cryptocurrencies, that level was broken last night. For months, the five-figure level was seen with the luster and aura of the December bull run, and with the bearish lens clouded in the crypt-winter of 2018, that height seemed insurmountable.
Bitcoin broke the touted $10,000 level after 15 months of trailing below and with the market starkly different from the maiden coming of the feat during the close of 2017 and the beginning of last year, this price push will only see a compounding effect. Several key catalysts were pegged to be the key drivers for this rise, from the onset of institutional adoption to the hotly anticipated halving.
Joseph Young, a cryptocurrency, among the above, highlighted the key “catalysts,” for the BTC bump over $10,000. The June 21 read,
$10k bitcoin, I missed you old friend.
Let’s look at some more potential catalysts:
1. Bakkt launch
2. FOMO level in $10k broken
3. Block reward halving
4. Clear rise in institutional demand
5. Rise in hash rate, developer activity
— Joseph Young (@iamjosephyoung) June 22, 2019
Each of the above reasons resulted in their own isolated spike in BTC price, hence deserving a place on the list above. Bakkt, the digital assets platform spearheaded by the Intercontinental Exchange [ICE] announced a July test phase for their BTC Futures contract which saw Bitcoin climb from $6,800 to $8,200 in a 48-hour period between May 12 to May 14, breaking the $8,000 mark for the first time since May 2018. With the BTC Futures still in test phase, the upcoming launch will likely result in yet another bullish swing.
Fear of Missing Out [FOMO], was thought to be a foe for the cryptocurrency community during the bear market of 2018, but in all intents and purposes, it’s been a trusted aide in 2019. Following the April 2 $5,000 ascendance, with every BTC bullish cycle, of which there’s been a lot, FOMO has trailed not far behind, with the investors skirting the line between skeptical and cautionary confirming with the larger market and divulging their funds into cryptocurrencies leading to a price push. This can be seen in the push above $8,000, $9,000 and now with the five-figure surge.
To many, it’s no surprise that 2019 has been a bullish year, with the 2020 halving imminent. As historical price movements go, three months to one year prior to the block halving, the price tends to surge. Right on cue, exactly 12 months prior to the May 2020 halving, Bitcoin exhibited its highest daily average price gain of over 17 percent at the beginning of April, and as the year prior to the halving go, 2019 is indeed turning out to be bullish, maybe even more than some people thought.
Institutional investors were hovering over decentralized currency for years before 2019, with Goldman Sachs hinting about a possible trading desk, which failed to materialize and Fidelity mining BTC and ETH way back, although not revealing the same till the launch of Fidelity Digital Assets in late-2018. The entry of the likes of Abigail Johnson’s Fidelity Digital Assets, TD Ameritrade, JP Morgan’s own internal digital coin and now the hyped Facebook Libra token set for a 2020 launch, institutional efforts are on the rise, and Bitcoin is certainly feeling its effect.
From an internal perspective as well Bitcoin is defying expectations, the king coin’s hashrate skyrocketed over its November 2018 high on June 15, 2019. Bitcoin addresses shot up over 1 million at the turn of the week, while whale hoarding dropped with the number of addresses holding between $1 – $10 worth of BTC increase by 19 percent since November 2017.
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