The recent Bitcoin rally is currently pretty much the most talked about news in the crypto industry. Bitcoin successfully hit the $7,000 mark and still went up to $8,000, making this its highest price in the last nine months. This upward course is still looking to hit higher after it previously had a bad streak that lasted about six months.
It has been predicted that Bitcoin will easily cross the $10,000 price mark and seeing that it is currently traded above $7,900 despite pullbacks, that price might be achieved sometime in the very near future.
With all the activity, some have wondered why the coin has picked up this much and continues its bullish run. If you’re one of those people, below are a few reasons the rally may have happened.
The market currently has about 2,000 different cryptocurrencies and regardless of the large number, each one is trying hard through different projects, to improve on its adoption and make more people involved in its usage. Mati Greenspan from eToro has corroborated reports which have said that there is steady and increased adoption in the sector. According to Mati:
“We’ve been seeing steady growth and adoption in the industry, and prices are starting to get in line with the usage of Bitcoin.”
Alternative to Gold
For a long time now, many crypto proponents have pushed for Bitcoin as a more suitable digital replacement for gold. Even though there have been varying opinions on the matter, the World Gold Council “officially” did respond to a campaign from Grayscale Investments which initiated a challenging campaign for people to adopt Bitcoin as a substitute for gold, with the hashtag #DropGold.
The response from the council may not have done much to fend off the effect of the ad because less than a week after the campaign was publicized, the Grayscale Bitcoin Trust ($GBTC) became the most actively traded stock on the over-the-counter market.
Increased Trust in the Market
In times past, anytime there are bad stories floating around, Bitcoin and the entire market would usually take a pretty bad hit and wait a while to recover. These days, that’s not a problem anymore as the market is no longer impacted by these negative stories. Even the recent news that Binance – one of the world’s most trusted exchanges – lost $40 million to hackers, didn’t affect the price at all.
Positive Technical Analysis
Most of the technical analysis and indices being used to either predict or describe the market have been favorable for Bitcoin. The asset has succeeded in breaking through most technical resistance levels set in recent times and the general viewpoint by technical analysts are now all very enthusiastic and bullish.
Regardless of the real reasons the coin is doing well, it is good news for the market as it will not only prove naysayers wrong but also push adoption for Bitcoin and other altcoins as well.