Bitcoin Bull Run: What Factors Can Raise Bitcoin From The Bottom?
Last week for Bitcoin was very stressful and stressful. Uncertainty, which is growing daily due to the collapse of stock markets, the fall of the Dow Jones rate to 3,000 points, has gripped the cryptocurrency market. In such difficult conditions, some analysts believe that Bitcoin has a chance to restore its market position.
Why Can Bitcoin Price Rise Higher?
Leading analyst Trajan believes that Bitcoin with a “head held high” will overcome the current instability, its rate will grow faster in the future. He identified 3 reasons that will contribute to this process:
- The S & P 500 entered a recovery phase: despite disappointing forecasts and concern among investors, the stock market began to “climb out” of the hole in which it found itself after a record fall on Monday. The decision of the US Federal Reserve Bank to stimulate the economy through an unplanned release of fiscal funds favorably affected the stock market. As a result, the S & P 500 increase by 3%. This trend may become a driver for the growth of the Bitcoin exchange rate.
- Bitcoin price drop stopped at $ 5,000. According to the analyst, this indicator may be the starting point for a wide rally of digital currency.
What Other Factors Show The Bitcoin Bullish?
Bitcoin lost the trust of some investors after analyzing cryptocurrencies by the Metcalf law. According to this law, Bitcoin was evaluated according to two parameters: the daily number of users of the Bitcoin network and the cost of transactions. The data was provided by digital asset manager Charles Edwards. He notes that BTC is trading above its value.
This is also evidenced by data from trader Charlie Morris from ByteTree. He also analyzed the value of Bitcoin based on user activity on the network and the number of coins. The expert concluded that the price of Bitcoin at $ 6,400 exceeds its real value of $ 5,300.
Thus, despite the shocking correlation of Bitcoin prices, some traders see prospects for the growth of the rate in the future. However, investors are concerned about the instability of the cryptocurrency and see Bitcoin as a risky asset that could lose its viability.