Why increased bitcoin? – analysis of rate for 18 July and forecasts

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This week, the cryptocurrency market have been revived. Today there is an intensive growth rate of all digital assets. The leader of bitcoin, it increased by almost 11%. The market capitalization of the top cryptocurrency has increased by $12.5 billion. Why is the bitcoin? There are several reasons.

Why increased bitcoin?

The first news that intensified bullish movement in the market it is the intention of the Fund BlackRock to enter the cryptocurrency market. Foundation specialists are already studying blockchain technology and features of digital assets. Given that the assets of the BlackRock trillions of dollars to market can significantly change the situation. Also this week, the hedge Fund of cryptocurrency and blockchain Autonomus Partners invested in the company by billionaire Steven Cohen.

Further news about the program change financial CFA Institute. In 2019, the leadership of the CFA intends to add to the curriculum “cryptocurrency” and “blockchain”.

On the growth of other cryptocurrencies affected by the news that the exchange is CoinBase adds 5 new assets. Among them Cardano (ADA) and Stellar (XLM) is the day they grew by 18 and 24% , respectively.

Forecasts of the exchange rate of bitcoin

The day the cryptocurrency was able to reverse the bearish trend and finally get out of the area at risk. Twice a month bitcoin tested the level of $6730 and finally broke it. Early in the morning the price of the asset increased to $600 and continues to rise. Daily trading volume grew to $6 billion.

The currency pair BTC / USD got support at $7200, serious resistance is at the level of $7550. Its breakout will open the way cryptocurrency to $8000 and above. Indicators point to the beginning of a new uptrend. A slight pullback after intensive growth, and the resurgence of bullish movement.

Previously on this topic in the news:

13.06.2018: 3 reasons for the recovery of bitcoin prices

Hacking crypto currency exchange and pressure from the financial institutions has negatively affected the course of bitcoin. However, experts believe that bitcoin will recover, and there are 3 reasons.

The TOP 3 factors that will contribute to the recovery of prices:

  • Protection from hacker attacks. The news about the hacking of the largest exchange can negatively impact the entire cryptocurrency market. But what doesn’t kill bitcoin makes it stronger. Repeated break-ins and hacker attacks will lead to the fact that bitcoin and other digital currencies will be improved. Christian ferry, President BlockStar, said: “As with any technology for cryptocurrency break will be painful, but it will be an important factor in strengthening the cryptosystem, which will make her more secure. This is key for mass adoption of the digital asset”.
  • Investment giants. Major financial institutions are already investing significant funds and hire professionals to research trading opportunities of bitcoin. NASDAQ has announced the launch of the futures market of cryptocurrencies. Already this month under the control of NASDAQ will be running platform-exchanger DX.Exchange. Company Goldman Sachs last month, has offered its customers future contracts bitcoin. ICE, the parent company of the new York stock exchange (NYSE) is developing its own trading platform that will allow investors from wall street to trade cryptocurrencies.
  • Cheaper transactions. From the point of view of technology, bitcoin has made significant progress in solving the basic problems of network scalability. Technology SegWit, Lightning Network and Multi-Path Lightning Payments reduce the fees for transactions and provide better throughput. We should also mention the launch of Bitcoin Core 0.16.0 activated Protocol SegWit. Currently, about 40% of the bitcoin transactions are processed using SegWit.
  • The cryptocurrency, which is more than 300 times predicted the collapse and death, a very interesting future. Experts believe that the history of bitcoin is not yet completed, and should expect new highs.

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    01.06.2018: 4 myths about bitcoin, in which I believe even professors of Economics

    Well-known British economist and honorary Professor at the University of Warwick Robert Skidelsky last week published an article urging people not to try to reinvent the wheel coin with bitcoin. However, cryptoanalysis not enthusiastic about reading material and say that Skidelsky stuck in the 20th century and believes in myths about bitcoin.

    TOP 4 myths about bitcoin:

  • Bitcoin is created out of nothing. Accordingly, he cannot claim the role of money. First, the value of bitcoin consists of several factors: energy costs, equipment, software, resources to run and support the network. Secondly, if bitcoin is not legal tender, as a medium of exchange and the digital asset is functioning perfectly, that is, de facto is money.
  • The lack of resources. It is known that the amount of mined bitcoins is limited. Today in circulation for over 17 million coins. Skidelsky believes that in the end bitcoin will face the same problem as gold is the lack of sufficient resources. First, Skidelsky thinks ahead, after all, experts estimate that the last bitcoin will be mined in the year 2140. Second, unlike gold, bitcoin is just the name of a digital unit, in fact each coin is divisible into satoshis. So 21 billion bitcoins is more than 2 quadrillion Satoshi, who will always be in Vogue, and the network will be upgraded to provide even smaller amounts.
  • Deflation. Due to the hard limit of bitcoin is actually deflationary currency, and Skidelsky forgot to mention it. However, previously well-known economist Robert Murphy explained that bitcoin is not so clear. In his opinion, people will continue to invest in the scarce but liquid and quickly traded goods. Even with the fall of all the main indicators: mining, number of services and companies that use cryptocurrencies continue to grow. If one currency is subject to deflation (deficit) and other inflation (as Fiat money is printed every day) – what will you choose?
  • Inflation. The reverse side of the coin, Skidelsky points out that the cryptocurrency is not protected from inflation. However, the scientist does not specify which inflation is a price or monetary suggestions. It is the habit of Central banks to print more money may lead to inflation. The issuance of bitcoin is not only monitored, but also completely transparent. Even gold may not be so all the time – you never know how much it will produce. Millions of people using bitcoin, you know that supply is limited, and choose scriptactive voluntarily as a store of savings or means of payment.
  • Cryptocurrency is a revolutionary idea, which is good because people can choose what to invest in. History shows that all the time, there was a power (government, Church, banks) that maintain a monopoly on currency. Now people have a choice between banks and decentralized monetary networkthat is not controlled by anyone.

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    24.05.2018: Tom Lee: “3 reasons bitcoin will rise to $25 000”

    Tom Lee Lindstroma prediction on which bitcoin rally after the conference, the Consensus did not materialize, continues to insist that by the end of the year the value of cryptocurrency will rise to $25 000. The forecast analyst with wall street underpins the three factors.

    3 reasons supporting the growth of bitcoin:

  • The cost of production and circulation of bitcoin. When the first cryptocurrency gave about $8000, in an interview with CNBC Tom Lee said that in fact, bitcoin is trading at cost. He has previously said that production costs amount to about $6000.
  • Institutional investors. Many are willing to invest and are interested in digital assets, but can not enter the market due to the uncertainty of the regulation. Tom Lee added that the recognition of bitcoin as an asset class will become a powerful impetus for the resumption of the rally.
  • Historical analysis. The company’s specialists Fundstrat Global Advisors analyzed the history of the development of bitcoin. Interesting, but for all the first borne digital currency, the profit answer only 10 days a year. Tom Lee says that the main thing is not to miss these 10 days since the rally from $8,000 to $25,000 will be very fast.
  • The current situation on the market analyst and investor explains “typical cryptocurrency volatility” and is confident that bitcoin will beat your record from last year.

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