Bitcoin every week manages to break all new highs for the year. Itself begs the question, is the current growth from the previous Bulanov? Let’s look at why this upward trend cannot be compared with the “bubble” of 2017.
Despite the prediction of the effect of FOMO after $ 10 thousand dollars from Tom Lee, a former veteran of wall street, Tony Weiss argues that this level does not matter. In 2017, ten thousand did not stop anyone. It will not stop in 2019.
The wheel of institucionales, not retail investors
Bitcoin historical high in December 2017 was mainly due to the activity of retail investors. This time, however, if you believe the search trends in Google, the public mostly standing on the sidelines. Now the number of queries about Bitcoin in the Google search engine is only 10 percent of what it was in 2017. In other words, retail investors have not yet moved into a stage of panic. Thus we can assume that price of BTC is quite capable to jump even higher than last time.
In this soared that institutional demand. As of June 17, CME Group reported 5311 contracts totaling 26555 BTC or about 284 million dollars. These volumes are even higher than at the peak of prices in 2017.
Fundamentals of network much better
On Friday, Hasrat reached a new record high of more than 65 million teruhisa. So now Bitcoin is safer than ever. And to have any detrimental effect on the network, it will require a lot of computing power.
Other fundamental indicators are also rising. The daily volume of transactions in the chain, the block size and other metrics point to a larger number of users of Bitcoin.
In addition, transaction fees remains relatively low compared with the 2017 year. Largely due to the various optimization solutions like SegWit and Lightning Network.
To halving Bitcoin in less than a year
In may 2020, the reward for finding each block in the blockchain of Bitcoin will be reduced from 12.5 to 6.25 BTC. Interestingly, after all the previous haligov the price of coins has greatly increased.
A clearer macroeconomic picture
Of course, intraday price movements of BTC is not so important for long-term investors. These Hodler believe that Bitcoin, with its fixed supply will surpass Fiat currency, whose volumes are growing exponentially.
On 18 June the European Central Bank President Mario Draghi hinted that if the economic situation does not improve, the banks will again begin to print money. At the same time, the President of the United States Donald trump criticized Draghi and stated that this may cause unfair competition EU vs USA, as the fed now proposes to postpone raising interest rates.
Therefore, potential investors can see Bitcoin — the so-called “digital gold” — more advantages against constantly devalued Fiat currency.
The history of market cycles BTC, the growing institutional interest, along with an increasingly robust fundamentals as well as the continued devaluation of Fiat currencies can lead to massive purchases of Bitcoin. That’s why this time the price could rise much higher than at the end of 2017.
What do you think if Bitcoin chances to break the historical maximum and to go even further? Please share your opinion in our cryptodata of hontarov.
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