4 reasons for Bitcoin's rise to a new 2019 high

16 Jun, 2019
by Will Heasman
4 reasons for Bitcoin's rise to a new 2019 high

In case you haven’t seen the myriad of Vegeta memes celebratory Tweets and wild speculation of the next price point, let us inform you, Bitcoin is over $9,000 (again). There are a few theories as to what caused this latest, so sit back and strap in as Chepicap takes a look at the 4 possible propellants for Bitcoin’s rise to a new 2019 high.

Right now Bitcoin is sitting happily above $9k at a price of $9094.

BTC/USD Chart provided by Tradingview

Today's price action marks a brand new 2019 high, as Bitcoin managed to rise to an intraday high of $9386 earlier today pushing bears further into the realms of disbelief and providing further fuel to the fire of bullish momentum.

So what actually catalyzed Bitcoin this time around?

Binance closing to US customers:

Last Friday Binance’s announcement that it was closing off its Binance.com services to US-based customers came as a shock and a blow, not only to Binance Coin, which saw a loss of 17% following the news but other altcoins as well which dipped as a result of the US cutoff.

The aftermath of a fairly dramatic turn of events is perhaps no surprise as binance boasts one of the highest global cryptocurrency volumes in the world.

The exchange noted losing over 40 million investors within their US customer base would equate to 15% of Binance’s monthly traffic dropping off altogether.

However, Bitcoin seemingly profited from this dire news, citing a 6% increases on the day and closing above $8700, gains which continued to be realized throughout the weekend.

US-China trade war:

While terrible news for the rest of the fincial world, the US-China trade war is proving to be one of the greatest catsylsts of 2019 with speculative investors growthing apathertic with lacklustre legacy stocks which are tumbling as a result of economic uncertainty. It appears that Bitcoin is proving to be a key sotre of value in these uncertaiun times as noted by many prominent analsysts:

According to Forbes contributor and professor of economics, Panos Mourdoukoutas, Bitcoin is “turning into the new gold,” following the US-China Trade war as investors worried about the unease “seek shelter” within cryptocurrencies.

In Mourdoukoutas’ estimation, Bitcoin’s rise is directly correlated to a potential sell-off of US treasury bonds by China who has over $1 trillion in bonds as part of its dollar policy management.

Ruggero Gramatica, founder, and CEO of Yewno, also prescribes to this theory:

“Bitcoin as a store of value could benefit from US Treasuries sell-off,” Said Gramatica

“Bitcoin, however, can observe a surplus of money flow as an alternative store of value pushing cryptocurrencies prices up. Bitcoin, and consequently other cryptocurrencies, is arguably a superior store of value due to its durability, limited supply, predictable inflation and ease of transfer.”

Bakkt announcment:

Last week Bakkt gave its Bitcoin futures testing phase an official date, revealing that the BTC derivatives test would go live as early as July 22nd. While the actual price action around this announcement was fairly limp its fair to say that the promise of the influx of institutions is acting as a primer for further retail investment.  

Bakkt will no doubt provide legitimacy and further mainstream adoption for Bitcoin, with its parent company, ICE, aiming to position Bitcoin as a “Trusted Global Currency.”

Bitcoin halving:

As ever, the anticipation of a Bitcoin block reward halving is rising, and as we get closer to the event it seems more and more people are starting to realize the potential aftermath of reduced supply.

In the past Bitcoin has seen a major upswing in price proceeding a halving, for example, Bitcoins price one year before the first halving was $2.55, one year after it was $1037, Similarly, the price before the 2nd halving was $268, and after it stood at $2,525.

In essence, the less BTC being produced, the more valuable Bitcoin is. This scarcity provides value thanks to the principle of supply and demand, a theory in which a limited supply of an asset, combined with high demand for it, results in an increase of the perceived worth of the asset.

As reported, Alyse Killeen - managing partner of StillMark Capital – is of the opinion that this imminent “supply shock” is directly responsible for Bitcoins recent rise:

“While we're looking ahead to this supply shock and halvening event, we're also seeing greater demand for Bitcoin and new on-ramps for more familiar and conventional sources. There's the anticipation that there will be a broader group of users and consumers who have an appetite for Bitcoin," Killeen said.

What do you think is responsible for Bitcoins rise to a new 2019 high? Can it continue to $10k? Let us know your thought in the comments below!

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

3 Altcoins to Watch this Bull Run! What's next for LTC, ADA and ZEC? Subscribe to the Chepicap YouTube Channel for more videos!


Will we see $12,000 by the end of July?

(155 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage