Bitcoin Bulls Are Back 🐮
Bitcoin Bulls Are Back
The recent rally in Bitcoin has brought the crypto enthusiasts and HODLers out of the woodwork and piling back into the markets with renewed hopes of a 2017-style bull market. But what’s caused the sudden surge?
Most likely a number of things. Bitcoin has surged over 100% since the start of 2019 and almost 50% since the start of April alone. That’s some pretty explosive growth, but the inherent unpredictability of virtual currencies has many wondering what the causes might be.
One of the top potential reasons has been the return of the trade war, which has sent global stock markets tumbling and investors fleeing in search of non-correlated, ‘safer’ assets. And while it’s hard to think of cryptocurrencies as ‘safe’ in any context, Bitcoin is a pretty good non-correlated alternative to the stock market. Who’d have guessed it??
Not only that, but the attitude amongst institutions is slowly warming towards the crypto market with sizable companies, such as Fidelity opening up Bitcoin products to their clientele. The CME group’s Bitcoin futures contracts also experienced record demand on Monday to the tune of $1.26bn in daily volume, indicating a strong turnaround in institutions’ attitude towards crypto.
Another possible, but less likely, reason is Chinese investors moving their money out of Yuan into Bitcoin as the domestic currency plummets to its lowest level since December. Even though Bitcoin trading was banned in China in February 2018, investors are still able to buy it from shady OTC dealers, but it’s hard to tell if these volumes would have enough power to move markets.
Whatever the causes, the Bitcoin bulls are back and smiling. Let’s see how much stamina this rally has got.