In recent days, the price of the first cryptocurrency has shown a 14.43% advance. The COVID-19 pandemic and the potential economic recession have not stopped BTC from showing positive numbers.
On April 19th, Bitcoin (BTC) exceeded the USD 8,000 barrier, which could be a sign that the cryptocurrency market is on the rise, a few days before the reduction by half of the issuance of the first crypto asset.
BTC has had a progressive growth for over one and a half months, after the price collapse that occurred on March 12th. Since then, Bitcoin’s momentum has already exceeded 100%, taking into account that the price fell from USD 4,000. At the time of writing this article, its price is USD 8,674 per unit, according to data from CoinMarketCap.
The analysis of these price increases by time allows observing that BTC has gained 8.78% in just 24 hours. In recent days, the rise has been 14.43%, and in recent weeks, the advance has been 27.12%. All of this has occurred amid an adverse environment due to the expansion of the coronavirus pandemic, forecasts of a global economic recession and the drop in commodity prices.
Bitcoin’s total capitalization is close to USD 150 billion, with a volume of almost USD 40 billion. This has served as fuel for other cryptocurrencies to also show positive numbers.
For instance, Ether (ETH) is trading at USD 209.09, with a gain of 6.54%; Ripple (XRP) at USD 0.220 (5.49%); Bitcoin Cash (BCH) at USD 254.16 (5.16%) and Bitcoin SV (BSV) at USD 202.99 (4.18%), according to data from Messari.
The Spanish trader whose pseudonym is @inmortalcrypto highlighted that short positions for Bitcoin are suffering a lot. The expert considers that bears are practically bleeding out as they short during the rise of Bitcoin, whose cap never arrives. Furthermore, he said that all of those short positions are constantly closing and automatically turn into purchases.
Another aspect that caught the trader’s attention is that the data that the exchanges show indicate that this rise is due to purchases with money from outside the exchanges. The fact that fiat money is coming in would be very positive for Bitcoin and the rest of the cryptocurrencies.
For @inmortalcrypto, the price will continue to rise because many people waited to buy at lower prices before the halving. However, the quotations that they were expecting have not arrived, so they are buying right now.
Another trader, whose nickname is @CryptoMichNL, also analyzed the existing environment in the cryptocurrency market. He noted that events such as the reduction by half of the issuance of Bitcoin could lead to a higher level of FOMO among people and the media. The operator highlighted that, once people realize that the event does not have a short-term impact, sales pressure will also be strong.
The cryptocurrency trader makes it clear that FOMO (fear of missing out) can arise when there are very strong rises, such as in the case of potential gains.
The Bitcoin halving is an online event, scheduled to occur approximately every four years. It consists of a reduction by half of the incentive that miners receive for their verification and registration work on the blockchain. This event could allow BTC to have a higher price, since it is a finite asset with 21 million coins, as a ceiling.
By Alexander Salazar