Bitcoin Breaks $8,000: Lets look at Possible Four Factors Behind the Rally
The bitcoin price has risen again to $8,000 for the first time since July 2018, leading most cryptocurrencies trading in the green. Bitcoin is now on top charts on Baidu hot searches ….China’s equivalent of Google trends. This is the case as at today being May 14, 2019 as the searches increases.
As at few hours time ago, Bitcoin is still trading at around $8,135 , up over 15 percent over the past 24 hours and also at nearly 40 percent in the week.
Many people are not sure of the reason for the sudden surge while it seems to many that there must be some certain factors to Look into:
Many crypto traders from China believe that presently, one of the popular cryptocurrencies the scam coin Vollar (VDS) could be behind the rise as many investors rush to VDS and as such must use BTC…Bitcoin, to exchange for VDS thereby causing increase in fund into the cryto space because as the need for VDS arises so the need for bitcoin as the purchasing currency.
The VDS lottery which comes like game has gone wide and viral, everyone is talking about it in China. It went viral lately in the Chinese Crypto community as its being used for multi level marketing promotion and bitcoin reward. This has lead to increase in the value of the coin from 4 yuan per coin in March to 85 yuan as the demand for VDS continues to skyrocket.
It still attracts large amounts of new money in it despite the fact that it is structured in a pyramid scheme pattern. It is estimated by According to local media, it is estimated that VDS has drawn about 7.2 billion yuan , which is almost like $1.05 billion of capital.
Lots of major financial and tech institutions are also part of bitcoin good news. Social media giant Facebook , for example with largely more than two billion users across its various platforms, is also launching a private cryptocurrency as they want to have their own coin.
According to reports that it’s working on getting venture capital firms to invest in its cryptocurrency project as well.
USD-pegged stablecoin for cross-border payments will also be on board as announced by J.P.Morgan.
Fidelity, the world largest assets manager is not left out of the bug to as is about to roll out bitcoin trading for institutional clients in the coming weeks.
It was announced on Monday by Bakkt, the digital asset exchange that shares a parent company with the New York Stock Exchange, that it would also begin the use bitcoin for future contracts in July but before then , they will start the user acceptance testing for the new method.
U.S.-China Trade War
According to a daily news programme produced by CCTV; China Central Television; Xinwen Lianbo – the Chinese government made a strong statement to its citizens that Beijing has made adequate preparations for the trade war between them and the U.S.
The strong speech got a lot of accolades by the Chinese and it quickly spread everywhere.
This lead to the crash in the stock market as the tension between the world’s two largest economies grows, following Beijing’s tough stance which the maintained in their broadcast to all of China.
This is one of the good structures of cryptocurrency which is decentralised nature protecting it from the influence of government intrigues and policies . Bitcoin could emerge as a global hedge kudos to its decentralized nature. It possible that U.S.-China relations may have sparked this potential for bitcoin, as robust investors turn to the crypto market for safety
FOMO Effect. ( fear of missing out)
It is possibly clear that some FOMO sentiments will arise as crypto traders will not want to be left out of the opportunity as some who has been waiting to buy when the price gets lower now realises the need to buy as the price of bitcoin keep risings. This makes the rush for bitcoin to increase.
Bitcoin bull Tom Lee asked via a Twitter poll what price BTC must hit for people captured by FOMO to rush in. 45% of the respondents thinks that $10,000 is a hit mark while 23% believe that mark is now.
These are the views and opinions are not necessarily a reflection of those of NASDAQ Inc., the are opinions and views of the Author and the respondents.
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