What Are the Reasons for Bitcoin’s Sudden Increase?
The price of Bitcoin finally increased with a very steep incline. why? what are the real reasons for the Bitcoin price increase? we can point out the most important of them...
The price of Bitcoin finally increased with a very steep incline. In fact, the $1200 increase in the price of Bitcoin in only seven days was so sharp that even the most optimistic analysts in the field of Bitcoin would not predict it. As the Bitcoin price increase got sharper, the average amount of trades in the field of Bitcoin has considerably increased as well. In fact, it is estimated that during the price increase period in the past two weeks, the trade volume of buying and selling Bitcoin went up to $20 billion. Yet, what are the real reasons for the Bitcoin price increase?
The answer to this question will not be that simple, and a lot of factors are involved in the Bitcoin price increase, though we can point out the most important of them.
1. Golden Intersection:
This happens when a short-term moving average (MA) collides with a long-term moving average and exceeds it. The most common moving averages that are used in technical analysis of Bitcoin are the 50- and 200-day periods. This golden intersection happened on April 22.
2. Fidelity’s investing report shows that organizational assets are on the way:
Fidelity that is the host of digital assets section conducted a survey to find out what pension, family offices, trust funds, financial, and institutes think about cryptocurrencies.
This survey showed that 47 percent of foundation investors said that digital assets have investing value, and these investors claimed that they consider cryptocurrencies for innovation.
3. Facebook’s Libra Project
Recent reports indicate that Facebook is actively using its allies to support cryptocurrency-based payment systems. Project Libra is an innovation based on Blockchain that will most probably benefit from the U.S. dollar as its stablecoin.
Rumor has it that VISA and Master Card support this innovation and even Wall Street Journal has expressed that Facebook will give stablecoin to users in exchange for watching ads.
4. U.S. Securities and Exchange Commission Introduced the new Cryptocurrency ETF
The U.S. Securities and Exchange Commission received a new application for trading cryptocurrencies that it has prepared based on the report by Crescent Crypto Index Services LLC, though Securities and Exchange Commission delayed the confirmation of this application.
5. Bull Market Consensus Conference
Even though this conference was not held last year, but this big conference will be held in some days, and it will gather different people to discuss matters of the day.
Yet, it seems that other factors, such as an increase in the number of Bitcoins purchased in the last month have also played a role in its price increase. We should wait and see how far this price increase will go.