Bitcoin is an open source network that offers a new kind of money that runs on a decentralized platform.
It uses peer to peer technology that bypasses banks and other central authorities that have been traditionally central to financial transactions.
Bitcoin Token known as BTC has been in the Crypto market for about a decade and only hit major headlines in 2017 December 17 when it rose rapidly to hit $20,017. Its prolonged bearish trend in much of 2018 also attracted proportional attention that pitted critics terming BTC as a zero-value scam and enthusiasts who believed it is the currency of the future.
In 2018, however, Bitcoin is bullish having gathered steam in the last 8 weeks and it seems as if Bitcoin is headed for a phenomenal price that may set unfathomable records.
Factors Behind The Surge
Increased Trading Activities
Between May 5 and May 14 2019, Bitcoin trading volume has risen from $14,808,830,723 to $31,748,342,069. The direct reason for the surge is likely to be a rise in value in the about $4 million Tokens that are in circulation in a daily basis in a Crypto market where there is a total of over 17 million BTC.
However, the volume of trading in the days under review has more than doubled meaning that BTC is overbought as investors rush to leverage on the prevailing ‘low prices’ ahead of a steep price surge that is being speculated by whales.
A renown Bitcoin evangelist from Morgan Creek- Anthony Pompliano- in a CNBC debate says that the increase in volume is being driven by a number of factors such as a Bitcoin rush in Crypto exchanges and the CME, US-China trade war that is driving investors away from the soon-to-be volatile traditional assets such as oil, gold, and forex trade, and a sharp BTC scarcity.
Pompliano goes further by predicting that the Bitcoin bull run could be a common feature in the next two to three years. But he does not give the ultimate BTC price.
Fed’s Quantitative Easing
According to Max Keiser of RT’s Keiser Reports show, the US Federal Reserve is rolling out a quantitative easing monetary policy. This is a strategy where the Fed is buying all kinds of assets and securities to inject money directly to prop up the economy.
This strategy is leading to an increase in money supply and people are looking for an asset with the highest positive net returns on investments to purchase. On Bitcoins standpoint, it has grown by 60.34% in the last 30 days by gaining over $3,086.14 to trade at over $8,130 as at Tuesday (May 14) 15:15 UTC.
The Crypto enthusiast further says that long term fundamentals such as the highly likely stability of Bitcoin, in the long run, will take Bitcoin beyond its peak of $20,089 on December 17, 2017, to over $100,000 in the future. This is because the Fed is “irresponsible” which makes traditional assets susceptible to their erroneous policies.
Ease Of Access To Bitcoin
There are hundreds of Crypto exchanges that have wallets which can allow people to buy Bitcoin with ease and in real-time. Additionally, there are endless mobile apps that allow investors to purchase Bitcoin such as TD Ameritrade’s BTC contracts, Cash and Robinhood, and the upcoming eTrade and many more.
Further, there is an excess number of platforms such as Spedn, Amazon, and more that allow customers to buy goods and services at online and brick and mortar market places and pay with Bitcoin.
These new trends and events are reshaping Bitcoin both as an asset and a currency which guarantees organic mass adoption which is likely to be the factor behind BTC overbought conditions triggering the bull run.