Having fallen nearly 3% on Tuesday, Bitcoin (BTC) returned on Wednesday with moderate gains but continued with strong increases today (Thursday). Currently priced at $9,372.1, up 2.29% for the day, Tuesday’s decline marked the end of an 8-day winning streak.
Although Wednesday’s gains were only minimal, the 13-month highs reached over the weekend, and the strong bounce in Bitcoin (BTC) price on Thursday, are getting investors excited about cryptocurrencies once again. The six days preceding Tuesday’s drop saw Bitcoin (BTC) record 2-5% gains daily; the longest run of daily price gains for 11 months. Having broken the key $9,000 barrier, Bitcoin (BTC) has posted a 146% increase. Is the ‘Crypto WInter’ finally over? Here are four reasons why the winter is over and Bitcoin will hit $20k before the end of 2019.’
1. The Zuckerberg Factor
Founded in 2004, Facebook Inc. (NASDAQ: FB) has just under 2.4 billion users worldwide. It adds 500,000 new users every day and its net income was $1.4 billion for the third quarter of 2018. Dominating the cryptocurrency news was the announced launch of Facebook’s Libra currency. Powered by blockchain technology, it has already garnered the support of 27 companies including payment processors Visa, Mastercard and Paypal.
David Marcus, the head of Calibra, the recently established Facebook subsidiary that plans to offer a digital wallet by the same name said:
Hopefully by the time this network goes live [there will be] over 100 different global organizations that will help manage and govern this new network and this new currency,”
David Marcus, Calibra
So what does this mean for Bitcoin (BTC)? Well, Facebook’s jump into the crypto-sphere is one of the biggest endorsements cryptocurrencies can get. The news, although only a few days old has generated a buzz in the crypto world. The buzz should equate to more than just hype and will raise the awareness and appeal of digital currencies in general.
2. Increased Bitcoin (BTC) Take Up
Even before we see the Facebook effect upon Bitcoin and other cryptocurrencies, we are already seeing positive signs that things are well in the garden of Bitcoin (BTC). The number of Bitcoin ATM installs in the world reached 306 last month, the highest increase for a year. By the end of 2018, nearly 32 million bitcoin wallets had been set up. As of March this year, this had increased by almost 10% to just over 35 million.
Meanwhile, big banks and financial institutions are investing heavily in researching and developing blockchain technology. 90% of European and North American banks were exploring or using blockchain in 2018. We look set to see a lot more of blockchain in everyday banking and personal finance in the very near future.
3. Stability Equals Longevity
Since the peak and crash at the end of 2017, Bitcoin and other crypto’s have generally been stable. Steady growth, along with an increased interest in owning and trading cryptocurrencies is brining stability to the whole crypto industry.
Extreme volatility is not good for longevity. It discourages retailers and investors as the volatility makes it unreliable. However, 2018 was very much a year of consolidation for digital currencies. There has been volatility but nothing of the scale seen at the back end of 2017; the gold rush period.
4. FOMO (Fear of Missing Out)
More and more people are either waking up to the fact that we are in a deep bull market or suffering from the good old fear of missing out. The thing is, we know Bitcoin can reach $20k; it’s been there before. Investors are tired of the stories of those bitcoin millionaires who bought low and sold at the right time. The fear of missing out on this bull run is spiking investment and fueling rises.
Recent Bitcoin endorsements are not doing the bitcoin buzz any harm either. Fundstrat Global Advisors’ research chief Tom Lee told CNBC that Bitcoin is poised to take out its all-time highs.
Bitcoin (BTC) is Back
Although there are still many regulatory questions to be asked of Bitcoin’s future and the impact upon price, for now, the future looks good for the largest of all the altcoins. Take up and usage is increasing are a period of stability whilst the Zuckerberg factor looks set to give the crypto world a massive validation.
The bulls are gathering strength and bitcoin looks set for a wild and upward ride.
