Seen the exchange rate of the bitcoin encrypted during recent months a significant rise amounted to more than 240% since the beginning of the current year, and the price of the currency on bitcoin last Wednesday about 13,500 USD, before declining to 11,500 dollars.
But what caused this rise? Analysts believe that, due to increased interest in the encrypted, geopolitical tensions, and expansionary monetary policy, reducing the supply in the next year, in addition to the “whales bitcoin”. Here we will examine each factor of these five factors:
The increased interest in the encrypted.
Use Bitcoin of the growing interest currency encrypted, especially after the optimism created by the detection of Facebook on its encrypted (Libra) Libra earlier in the month of June, as the company announced a partnership with major financial services companies, and technical, including: Visa, PayPal, and AWeber, and Spotify, in addition to other companies. Aim (LeBron) to simplify payments, and purchases via the internet.
He also attributed the cause of the high price of bitcoin to the increasing interest shown by institutional investors in the currency. As you will start a financial services company of America (Fidel my investment) Fidelity Investments by allowing customers to purchase and sale of crypto-currencies, as reported by Bloomberg for the month of May last. Have begun to other platforms for analysis, such as: (Robin Hood) Robinhood, already in currency trading encrypted.
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He (Luqman four) – local research in FXTM: “the main engines behind the rise in the value of bitcoin is due to growing optimism about the crypto-currency that has become acceptable to the public.” He added: “We have increased the (LeBron’s) appetite for bitcoin”. However, he warned that the offices of the crypto-currency is not guaranteed.
Said four: “you’ve made the lessons learned from the past how can that be financial instruments, non-traditional and unexpected, such as bitcoin”. He added: “Given the volatile moves of the sudden is not something new in the world of crypto-currency, the bitcoin may still experience periods where they find themselves under pressure to sell of a sudden”.
Became a bitcoin, which is seen as a safe haven
War prompted the U.S. trade with China, conflicts with Iran, Mexico, Germany, and other investors to buy bitcoins as a means to diversify their portfolios.
He (Marcus Swanepoel) – CEO (Luohu) Lunu, a work platform encrypted: “because the geopolitical situation is still uncertain to a large extent, investors are still restoration they look to the bitcoin water as non-linked assets centralized, and thus they provide an option to the semi-safe”. However, it may not be bitcoin the best way to hedge. A new study has found that they were subject to the same market forces such as traditional financial assets.
Central banks may be active demand for bitcoin
The commitment of the European Central Bank recently cut interest rates and buy assets as necessary to protect the euro area economy, and the Federal Reserve that it may cut interest rates as soon as possible in the next month, led to increased demand for the currency are encrypted.
It is believed that lower interest rates will reduce borrowing costs and discourages savings. With the continuation of the central banks in their monetary policy expansion, the joint bitcoin the flow of liquidity to the markets that will pay the price of crypto-currency to the top.
Said (Neil Wilson) – senior market analyst at Markets.com: “I impose the huge liquidity from the central banks of the group of assets such as gold, bonds, yen (Japanese), etc., so the currency bitcoin swept away by those currents large”. He added: “I regressed the returns of nominal and real sharply, which reduced the opportunity cost of fraud in bitcoin”.
There has been a reduction in the labour supply of encrypted next year
Analysts believe that one of the biggest reasons for the rise bitcoin is a “half-lives” of the following currencies encrypted in the month of May 2020, where it will share the rewards provided to the “metal” bitcoin, which will supply of digital currency.
Referred to as the Bitcoin relies on what is called the computers “mining” that checks the health of block transactions through the development to solve mathematical puzzles every 10 minutes, and be rewarded the first to solve the puzzle to get as much of the work of bitcoin. It has been designed a technical bitcoin to reduce the bonus for teachers in half every four years, a step intended to maintain the level of inflation. The value of the reward mining at the moment 12.5 House. In half-lives the following of 2020, will decrease the reward to 6.25 House formations.
You might say the whales to high prices
Contains a small number of early investors such as: the Twins Winklevoss a large portion of bitcoin. The collude these whales raise the price of bitcoin.
He (Mr. Shekhar) – co-founder of analytics of crypto-currencies (Tucker annalist) TokenAnalyst – in an interview: “there is a core group of the owners of bitcoin bulls, who won’t let Bitcoin drop to unacceptable levels”. He added: “These are also the people who support them during the highs”.