After the amazing gains made by Bitcoin and other cryptocurrencies over the past two weeks, the cryptocurrency markets are starting to pull back a bit as expected, although analysts are still looking forward to the next peak, but some have revised their forecasts.
Anything that is up around 20% in less than two weeks needs a breather, and that is exactly what Bitcoin is doing right now as it correctively pulls back to trade above the $8,600 level.
Bitcoin jumped to a two-month high of $9,200, and the expected pullback took place causing a drop above $8,600, analysts are still XM Arabia Bitcoin is likely to continue to the upside although some have revised their expectations for the upcoming peak.
The cryptocurrency surged more than 22% in the first 15 days of 2020 to mark the currency's best start to the year since 2012, with a combination of factors including gaining institutional interest and growing odds of being a hedging tool like gold, as well as growing interest from central banks. With the crypto entity, this decade may look promising for crypto leadership.
Reasons for the rise of Bitcoin
Several factors are fueling the upward trend of bitcoin, including global trading company CME Group launching options linked to bitcoin futures this week, creating a new tool for institutional investors to buy the cryptocurrency.
Furthermore, a survey of financial experts showed that a higher percentage expect cryptocurrency to be allocated in 2020 than in the past, and 64% of experts expect the price of Bitcoin to rise over the next five years, up from 55% of experts in last year’s survey.
It is believed that the escalation of geopolitical tensions between the United States and Iran coincided with the big jump in the bitcoin currency, indicating that it is a good hedge tool in times of volatility and geopolitical crises, especially since this event is not the first of its kind. The United States and China and the worsening trade relations between them Bitcoin has taken a strong upward curve.
In recent days, many global central banks have stated that they will cooperate in order to benefit and exploit cryptocurrencies, and according to a statement published by the Bank of England indicated that the Central Bank of Canada, the Bank of England, Japan, the European Union, Sweden and Switzerland with the Bank for International Settlements will establish a group for joint cooperation in cryptocurrency .
According to the International Monetary Fund, he indicated that about 70% central banks in the world are conducting extensive studies to issue their cryptocurrencies, and the possibility of using them in interstate payments and cross-border transactions.
China's central bank has announced that it is preparing to test its cryptocurrency, a good sign that cryptocurrencies will reach a status roughly equal to fiat currencies.
Crypto investors are constantly bullish on Bitcoin in its upward trend, while others have viewed the huge jump in its price from another angle, raising fears of a repeat of the crypto bubble scenario in 2017, especially as Bitcoin has entered a new phase of maturity and adoption.
The effect of halving and the flow of investors
Bitcoin investors are hoping that the Bitcoin halving will drive prices higher, and this event is likely to happen on May 12, when the amount of Bitcoin awarded for blockchain mining will decrease, and given the decrease in the cash reward from 12.5 coins to 6.25 coins, the decline in supply entering the market from Miners are likely to cause the price of the asset to rise.
- US Dollar largely erases 2024 gains amid expectation of federal rate cuts. - 17 September, 2024
- Rare currency pairs in the Forex market - May 26, 2023
- Key tips for traders in Forex Market - April 20, 2023
