Major signs are flashing bearish for bitcoin today. While the largest digital coin by market cap has witnessed an uptrend in the past few months recovering from the lows in December 2018, a close to $3,000 drop has been the order of the day.
With the exception of the recent plunge, bitcoin had been on an upswing, obliterating major hurdles along the way to attain close to $14,000 and enthusiasts are optimistic that a huge bitcoin bull run is imminent.
Catalysts That Could Trigger A Significant Bull Run
Is bitcoin going to accumulate then begin pumping again? There’s so much happening globally that could get the price rally back on.
First, the shift in policy by the Federal Reserve has had an unimaginable positive impact on bitcoin. As published by The Wall Street Journal, Jerome Powell, Fed Chairman opined, ”The case for more accommodative policy has strengthened.” Following this announcement, the price of bitcoin surged, surpassing $11,000 after gaining up to $1,000 in a day.
Fed also announced that they are keeping the interest rates steady but they could cut them in the future if the trade policy proves unfavorable. This decision further weakens the US dollar against rival assets, in this case, bitcoin.
Secondly, the ongoing trade war between the United States and China has had investors’ attention diverted to bitcoin as a safe haven. This trade war, if it continues, will cause the Yuan to weaken further, meaning bitcoin’s value will most likely pump.
More Good News For Bitcoin
The world is now awash in more than $10 trillion of negatively-yielding sovereign debt. This debt has now clocked $13 trillion, an insanely large figure that’s taking a toll on investors. This means that investors will receive less from their portfolios if they continue holding the bonds till the maturity date. Analysts have pointed out that bitcoin’s price has surged in tandem with the growth in this figure.
The G20 Summit scheduled for June 28-29 in Osaka, Japan is another event that could spur bitcoin prices. The G20 Summit will run alongside the V20 Summit where leaders will discuss the new recommendations proposed on June 21 by Financial Action Task Force (FATF) and their impact on crypto businesses.
With these factors in mind, the long-term bias remains bullish for bitcoin.