In 2019, more and more people are getting attracted to the world of cryptocurrencies due to the sudden rise of Bitcoin. Long after the summer of 2018, the market value of Bitcoin has again exceeded $8000, as on May 24, 2019. Although it may not seem to be a big news to many, since it is not a record mark for Bitcoin, the once unpredictable currency that was stable for a long period, suddenly has gone through a revolution. This Bitcoin Revolution has surprised the Bitcoin owners as well.
The Reasons Behind Bitcoin Revolution
This incident has triggered many questions and confusions. While people are wondering if it is a good time to trade Bitcoin, experts have shared their views on the reasons behind this sudden growth.
The trading platform BitMEX
BitMEX is the most important trading platform for Bitcoin. Not only the Bitcoin/USD liquidity offered by this platform is more than any other platform, but it is also the most liquid in the world. Thanks to the insurance fund of BitMEX, its trading pairing causes about 15% of the universal trading of Bitcoin. If there is excessive liquidation, then this fund covers the losses caused by it.
A falling MFI
The MFI (Money Flow Index) that measures buying and selling pressure by using the price and volume of an asset contradicted the low regarding Bitcoin’s value on March 4 this year. This fall can also be a reason for increasing the selling pressures of this cryptocurrency.
The safe asset notion
The co-founder of Interchange Dan Held says that people viewing Bitcoin as a safe asset can be the reason for its revolution. When the market is unstable, it is a safe option to invest in Bitcoin. The market value of this cryptocurrency is so stable that traders do not have to take any risks. Some even compare Bitcoin to gold and bonds in terms of investment.
Impact of reputable institutions
People are always driven by the notions and actions of reputable institutions which can be another reason for Bitcoin growth. Institutions that take interest in cryptocurrencies consider Bitcoin as a trustworthy asset. The giant of Wall Street, Fidelity has announced their participation in the trading of Bitcoin. Ordinary individual investors are easily drawn by these largest asset managers and follow them.
So, expert opinions on the reasons of Bitcoin revolution are acknowledged. But what is going to happen to Bitcoin next?
Price forecast of Bitcoin
Cryptocurrency experts continue to predict the future of Bitcoin. Tuur Demeester, a member of Adamant Research, says that the cryptocurrency is needed to be more sustainable. Although there are no signs of any market damp yet, a Parabolic Bull Run may happen again like it did in 2017.
Experts of Investing Haven say that the value of Bitcoin will not exceed its record mark within 2019 and 2020, which is $25000. However, Bitcoin will still function as the leading indicator of the crypto market.
Economist Joe Davis, who is the head of Vanguard’s investment strategy group, contradicts with this notion. He says that the price of Bitcoin is only a function of speculation. As Bitcoin’s value is volatile, it is considered as a poor store of value by Joe Davis. Bill Gates also supports his opinion.
However, some experts also predict that Bitcoin will have a stable increase soon. These experts are the co-founder and Head of Research of Fundstrat Tom Lee and an analyst of the Fundstrat Sam Doctor. Tom Lee predicts that Bitcoin’s current fair value will go from $14800 to $150000 per coin when Bitcoin wallets will account for seven percent of 4.5 Billion Visa holders. Sam Doctors predicts, that it will stay between $20000 and $64000, with an average of $36000.
Jack Dorsey, the CEO of Twitter and Square believes that Bitcoin will soon be stronger than the Dollar, and it will especially reflect on the online market.
However, not everyone keeps faith on Bitcoin. WalletInvestor and Coinpredictor suggest that Bitcoin is not a great option for a long-term investment. According to their forecast, Bitcoin’s value will drop -4% in one month and -22.8% in three months, resulting in its value dropping to $5887.96.
It is your choice what to believe, but the optimistic future depends on the support provided by more businesses and organizations.
Disclaimer: This content does not necessarily represent the views of IWB.