Bitcoin Bounced off Its Downturn Last Year and Now Grabs Us $ 13,000 per Unit

Bitcoin Bounced off Its Downturn Last Year and Now Grabs Us $ 13,000 per Unit


Bitcoin skyrocketed during this week and exceeded the $ 10,000 barrier, a value that it had not registered since March 2018, with a quote at the time of writing these lines of $ 12,817 for each unit. During the past year, the price reached a little less than the US $ 3,000 after a bullish rally that led, in the middle of that year, to touch the US $ 20,000. In a new milestone, the cryptocurrency market capitalization now stands at more than $ 200 billion. The dominant position of Bitcoin in the market (compared to other cryptocurrencies and alt coins) has reached 60%, a record since 2017.

There are several reasons to account for the price increase. On the one hand, you can mention the launch of Libra, the stable coin of the consortium led by Facebook that among its ranks has giants such as Visa and Uber as well as Argentina’s Mercado Libre.

In addition, by the year 2020, there will be an event programmed in the technology of Bitcoin (“halving”) that profoundly changes its operability. The number of bitcoins generated by each “mined” block in its blockchain was set to decrease geometrically, with a 50% reduction every 210,000 blocks or, approximately, four years. The next one will be in May 2020, and the reward per block will drop to 6.5 bitcoins per mined block; so the bitcoin offer will drop sharply.

“But more important is the degree of use of bitcoin in terms of hash rate, of the amount of open and operational wallets, those that have more than 0.10 cents, everything has been increasing month by month and that is the main key.

Another point that highlights the economist is the commercial war between the US and China, which intensifies free trade conditions and values ​​Bitcoin “which has almost no regulations or friction.” Litvinoff exemplifies his position with the case of the Chinese Binance exchange, which on Tuesday reported a transaction in its cryptocurrency worth the US $ 1.2 billion with a rate of only US $ 0.015 and in just over a second.

“The strong factors are events like halving because some want to get in before the broadcast goes down. In addition, the good news was confirmed as the entry of the great institutional players that although it is a small number of investors, they usually make holding purchases. The fact that there are more large purchases but many small sales are evidence in favor of this. The Libra thing has more to do with spreading the concept of cryptocurrency, ”explains Manuel Beaudroit, CMO of the Bitex company, which works cryptocurrencies and financial solutions based on cryptographic technology.

During 2017, the price of Bitcoin reached almost $ 20,000, but according to analysts, this bullish rally is qualitatively different. “They look like the parabolic increase and the feeling that it can go up 10% or 15% in a day like nothing else. But there are important differences. Institutional buyers seem to occupy a more important part during the previous rise, it is seen that it rose silently. There seem to be no soft hands like in 2017, which the market purges them strongly.

“Since the technical analysis, Bitcoin has no resistance until $ 17,000 or $ 18,000. But there are always psychological sales barriers in whole numbers, ”says Litvinoff.On the other hand, when compared to the previous bullish rally of 2017, the search for information on Bitcoin on the internet barely represents 39% of its historical maximum, the same applies to the intensity of the transactions. The adjusted value of transfers in the Bitcoin network is also lower now than in 2017. At that time, the average amount of bitcoins transferred daily was 384,000; There are currently 177,000, less than half of the daily amount previously registered at the price point of $ 11,000. For some, this indicates room to grow and a subsequent rise in price. Beaudoin, on the other hand, says that it is not possible to predict a correction “although the possibility is”, he clarifies.

“The best philosophy to buy is to know that money does not have to go back to fiat, it always has to be thought of as digital and it should be remembered that Bitcoin, even comparing its minimums year after year, always went up.”

Add to this from Bitex that “the best strategy is to be careful and to average, if you buy once a month, you buy a portfolio price. If technology interests, it is convenient to build a portfolio little by little ”.


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