What happened to the Bitcoin rate? Will it continue to grow?May 20, 2019
The market capitalization of cryptocurrency exceeded $ 250, while the absolute majority of coins show a weekly growth of more than 30%. At the same time, over the past seven trading days, ETH and XLM have risen in price by more than 50%. Moreover, the number of coins with a capitalization of more than $ 1 billion increased to 16.
Last week we saw incredibly high volatility in the cryptocurrency market. BTC set the high of the current year at $8352, then collapsed to the psychological level of $7000. After a powerful collapse, buyers managed to return to the highs of the current year. The overall decline in the BTC price reached 16%, having fallen from $8350 to $7000.
Bitstamp conducts an internal investigation on a transaction for the BTC sale at a meager price. It is about selling 5000 BTC for $6200, while the market price of this cryptocurrency was only slightly below $8000. This deal contributed to the cancellation of a large number of long positions, and as a result, it provoked the collapse of the BTC price to the level of $7000. But there was no further decline, indicating high physical demand.
Earlier, it was noted that cryptocurrencies begin to perform the function of a payment instrument and, as a result, become increasingly popular for businesses. Thus, the likelihood of further price growth remains very high.
There are more and more optimists.
The growth of the cryptocurrency market attracts the investors’ attention and also sharpens the feelings of those who believed in it even at the moment of the collapse. Mati Greenspan, eToro platform analyst, made a very optimistic assumption about the BTC growth. On Bloomberg live, he stated that BTC could grow by an incredible 10000% –50000%.
The analyst focuses on fundamental factors, mentioning the rapid development of the cryptocurrency market and the increasingly active use of crypto. Large US retailers already accept cryptocurrencies for payment due to the partnership with Gemini and Flexa.
However, the more crucial fundamental factor contributing to the rapid increase in the popularity of BTC as a payment instrument was the decision of Donald Trump to raise tariffs for China.
Binance – not so smooth
After a hacker attack on Binance, the largest cryptocurrency exchange in terms of trading volumes, the security system was upgraded. At the moment, the exchange is operating normally, but at the time of the work resumption, its users faced several problems and limitations. First of all, Binance allowed outputting most tokens, but not BTC. Besides, due to the high load, the time for withdrawal of available coins exceeded the regulations.
Some users noted problems with cancelling trade orders or logging in. Despite these issues, the demand for BTC and other coins from the TOP 16 remains steady. It can be explained only by the fact that cryptocurrencies perform one of the main functions – a means of payment.