BeInNews Academy Ltd © Street: Suite 1701 – 02A, 17/F, 625 King’s Road, North Point. Hong Kong.
Aspicks up momentum, many crypto-analysts are arguing that a perfect storm is brewing for the ‘biggest bull run yet.’
As it stands now, there’s something of a perfect storm developing for Bitcoin. With trade wars and uncertainty in the financial markets making investors uneasy, Bitcoin is positioning itself as an attractive leverage against chaos.
Yes, we often hear the mantra that “this time is different.” Yet, truth be told, this time really is different.
Let’s look at the reasons why Bitcoin is poised to do well in 2019.
1. Halving 2020
The single most important event for Bitcoin is happening in May of 2020. With the halving event set to occur thereby cutting mining rewards by half, the supply of Bitcoin will become that much scarcer. This has always been followed by a major price increase.
2. Gold Is Rising
Bitcoin has been following gold’s lead for the last three months, a relative rarity in this market. The two assets have been lockstep likely due to the fact that both are seen as a hedge against traditional finance. As Washington Post reports, the supposed ‘randomness’ between the two markets has all but ceased which is a positive indicator for both gold and Bitcoin.
3. The Libra
Say what you will about Facebook’s Libra, it is, without a doubt, the greatest publicity the cryptocurrency market has ever had. Not only has Libra made blockchain ‘legitimate’ in the eyes of the public, but it ensures that cryptocurrencies are here to stay. Of course, we will have to see what becomes of the Libra in the long-run, but overall it is yet another bullish indicator for the cryptocurrency market.
4. Trade War and Declining Stocks
The recent devaluation of the Chinese yuan has caused ripples in the stock market, with major stocks nosediving this week. The end result has been panic and the possibility of a trade agreement between the U.S. and China seems like a forgone conclusion. Since Bitcoin seems to be negatively correlated with the S&P500 and other major indexes, this momentary instability seems bullish for the entire market.
5. Inflationary Concerns
In the past two years, we’ve seen hyperinflation take place in Venezuela, Iran, and other countries. It’s no wonder that these same nations are also looking for cryptocurrencies. Moreover, it seems more and more likely that we’ll see a troubled nation turn to cryptocurrencies to stabilize their economies.
Of course, there’s plenty of other reasons the cryptocurrency market (particularly Bitcoin) looks strong going into 2020. These range from Brexit/EU tensions to declining trust in central banks to expanding crypto-custodial services.
Overall, the financial markets seem ripe for some blockchain-based disruption. Let’s see if it will come to fruition as we approach May 2020.
Do you believe that there is a bullish ‘perfect storm’ brewing for Bitcoin? Let us know your thoughts in the comments down below.
If you are interested in The trading space has evolved over the past few years, with new methods of making predictions on cryptocurrencies being introduced... More cryptocurrencies with a multiplier of up to 100x on our new partner exchange with the lowest fees, follow this link to get a free StormGain account!
Do you want to Be In Crypto?Join our Telegram Trading Group for FREE Trading Signals,a FREE Trading Course for Beginners and Advanced Tradersand a lot of fun! Images courtesy of Shutterstock, TradingView and Twitter.