What Caused Bitcoin to Jump 100%?

[magneto]

Is there any particular reason Bitcoin has jumped 100%+ in 5 months?

The article below is really interesting naming 5 of the potential causes, but i'm still not convinced this is sustainable - it's reminding me of 2017 times and I sense a correction. Let me know if you think it's any different this time and why?

https://medium.com/@marcus_61942/return-of-the-bitcoin-bulls-a-summary-of-the-potential-causes-f9febb1a4664

I personally agree with pretty much all the points made, except the fact that a stablecoin like Tether has that much of an impact on what the overall market sentiment is.

The main reasons are most likely a combination of the cycles that exist within BTC markets, and the prospect of institutional investors that people expect will now enter the market within this current bull market.

It should have been clear enough that this was going to come given the fact that the fundamentals of bitcoin has only improved since the 2017 ATH, which means that the only reason that prices are kept down is because of the irrationality of the sentiment within the market. Psychological factors play a huge role.

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[Lucius]

People being confident that the bottom is in are more likely to buy Bitcoin now, and this might have been fueling the demand. Bitcoin is cool for them when it goes up, but they ignore it when it has gone down a lot.

On one hand, I understand people who are buying now, they see opportunity for profit because price shoud be only go up form now. But on the other side it's pretty stupid to invest now, since it was possible for months to buy something for half the price or even lower ($3k-$4k). Expectations that prices will fall further and stories like "bitcoin is dead", only filled bags for those smart ones who will ultimately profit the most.

The vast majority of those who possess bitcoin are people who can be easily manipulated, they sell when there is no time to sell, and buy when it is not time for buying.

[upsidedown75]

the reason is because you forgot to ask why bitcoin price dropped 50% in 5 months ago so now you are confused about why the price is rising back up to where it belongs. none of the things said in that article are correct because the reason is simply because we were underpriced (in a reverse bubble) which needed to be corrected and now it is starting to be corrected.

- Mining Rewards Halvening
we are far away from this to be an actual reason!

-Trade Wars
that's just nonsense because bitcoin is not used in any of this "war" between China and US to be affected by it. you could have used it as a reason only if people were using bitcoin as their import export currency for trading.

- Tether
this is completely irrelevant not to mention that the article is stupidly claiming that people sold Tether for USD and then bought bitcoin with it!!! which caused the price rise.

- Institutional Money
this has not yet happened in any meaningful big scale. it has been happening slowly so it can't be the "new" reason for the "new rises"

I like that mate, and I agree with you that this is where bitcoin is expected to be and the question we should always ask ourselves is why bitcoin drop and not the reverse. If not because of the system whales took advantage of and manipulated, we were actually not supposed to see that ath of $20k that soon.

The way bitcoin is slowly increase which makes the market very healthy now is the way bitcoin ought to have been performing. This increase is not even an abnormal one for us to be querying, we are just simply having more demands for it as we get more adoption and investment from new investors.

[Herbert2020]

But on the other side it's pretty stupid to invest now, since it was possible for months to buy something for half the price or even lower ($3k-$4k). Expectations that prices will fall further and stories like "bitcoin is dead", only filled bags for those smart ones who will ultimately profit the most.

just because they missed an opportunity it doesn't mean they should keep on missing the other ones and not buy. i don't see anything stupid about buying now. obviously you prefer to buy at the bottom but right now we are not at the top of a bubble or anything like that because bubbles on the only time when it becomes stupid to buy like $20k! right now we are just getting started to rise so it is still a good idea to get in.

[Slow death]

it seems that everyone has decided to make price forecasts, I agree with this part:

Mining Rewards Halvening

There will only ever be 21 million Bitcoin in existence and 85% of these are already in circulation. Every time a miner adds a new block to the blockchain, they are rewarded in Bitcoin for the computational workload — this reward is Satoshi’s way of distributing new coins into the economy.

In order to keep inflation in check, the block reward is cut in half roughly every four years (210k blocks) in an event known as the “halvening”. Miners are currently rewarded with 12.5 BTC per block mined, but in almost exactly one year (May 2020), this will drop to just 6.25 BTC per block.

Historical data has indicated that this is cause for a rise in value, and the bullish trend appears to emerge roughly a year prior to the event (aka. now). The reason being the significant increase in scarcity. At the moment, miners could sell roughly 54,000 BTC a month, and this greatly suppresses the price; in one year’s time they will only be able to sell 27,000 BTC a month, and this dramatic reduction in supply causes increased demand.

probably the halving is the biggest catalyst for the price increase we are seeing, people want to buy too early to have high profits.

on the other side it's pretty stupid to invest now, since it was possible for months to buy something for half the price or even lower ($3k-$4k).

Imagine the people that want to hold for 5 years? for those people who want to hold for 5 years it will not be a problem to buy now

[STT]

Pretty simply -- more people wanted to buy Bitcoin then people that wanted to sell it, which would be in reverse if the price is going down. Pretty basic economics there folks.

On a base level I always think Bitcoin has a substantial unyielding nature to its movement under pressure.   So if there is alot of buying coming into order books, not a very large amount is available to service that demand.
The base production of BTC does not rise for any reason, most commodities will respond with greater production to a large number of buyers.   Theres always latent mining production in normal commodity production but in Bitcoin this is not really the case as difficulty adjusts to make production redundant .

Also there is many holders who do not release coins to any spikes which only leaves the very short term speculators and especially those on leverage who will sell and have sell orders ready to do so.   That means there is always spiky action but below that level its a strong hard line of fixed supply to any demand.  If population of potential consumers is rising and even a requirement for more crypto use is ongoing, users of Bitcoin rises and its more likely to create a bullish atmosphere then for any other market

[philipma1957]

What is BTC based on?  Turning electrical power into coins.

What has happened since the price crash.

The introduction of 38watt per th gear in the form of the bitmain s17

Lets look at the following ratio

s9 100 watts a th

s17 38 watts a th    that is 100/38 = 2.63 to 1

btc price

8600

3200    that is 8700/3200 =   2.71 to 1

this relationship is not a mere coincidence it is what the big players look at.

A huge miner/builder has influenced price to match the improvement of mining gear efficiency

Ie bitmain and their investors are making hay for a while

and price reflect the s9 to s17 improvement.

So if you magically switch your s9 for s17 the price gain matches your efficiency gain.

No more complicated than this.

the real question is will we exceed this level which is exactly equal to oct 4th 2018  when you compare a guy with s9's to a guy with s17's

Personally I am hoping for fomo to happen. Since to equal the dec 2017 levels we need to have a price point of 50k not 20k once you factor in diff and gear efficiency

[jostorres]

I think the main reason was us breaking the resistance point. I mean we have tried to break the 4200 levels for so long that after we broke it the other resistance points became very easy and very breakable which allowed us to go %100 without any big resistance ahead.

Another reason could be the trade wars going on between Russia-USA-China because in the end that trade war means it will not be easy to send and receive money from and to those nations between them which made all other business people getting bitcoin instead of that countries money which could be later used for that countries money without breaking any laws in the trade war. Combining two of these together it resulted with us having bitcoin as a solution and now over the biggest resistance point which made it jump very quickly.

[omonuyak]

Is there any particular reason Bitcoin has jumped 100%+ in 5 months?

The article below is really interesting naming 5 of the potential causes, but i'm still not convinced this is sustainable - it's reminding me of 2017 times and I sense a correction. Let me know if you think it's any different this time and why?

https://medium.com/@marcus_61942/return-of-the-bitcoin-bulls-a-summary-of-the-potential-causes-f9febb1a4664

Many articles and blogs posts has tried to tell us the writers viewed on the current bull trend but I think the major reason for the current bull run was that the bearish momentum that started in December 2017 when bitcoin hit it apex has end in December last year and since it has ended people start to have confidence on the market and are investing.

[joshy23]

Is there any particular reason Bitcoin has jumped 100%+ in 5 months?

The article below is really interesting naming 5 of the potential causes, but i'm still not convinced this is sustainable - it's reminding me of 2017 times and I sense a correction. Let me know if you think it's any different this time and why?

https://medium.com/@marcus_61942/return-of-the-bitcoin-bulls-a-summary-of-the-potential-causes-f9febb1a4664

Many articles and blogs posts has tried to tell us the writers viewed on the current bull trend but I think the major reason for the current bull run was that the bearish momentum that started in December 2017 when bitcoin hit it apex has end in December last year and since it has ended people start to have confidence on the market and are investing.

With investors and traders begin to pumped again the market, the bearish season will be reversed to bull, it's the determination to bring good calls while you are around this industry, market trends will give you positive position if you'll play right with how traders and investors did.

[emmybd]

I believe Whales have been very active in the market and a lot of new investors have been entering the market in the hope of making profits in future, so the price has been increasing.

[Distinctin]

I believe Whales have been very active in the market and a lot of new investors have been entering the market in the hope of making profits in future, so the price has been increasing.

Though it contributed in the market (some) increase but doesn't enough to push the prices to move forward, it also needs support from the entire community. We are actually be seeing it in the uprising trend towards another ATH but we can't be sure how long we've been like these or came into my mind that bear season will come next just like it happened last 2017 event.

[Botnake]

There's probably some manipulation on the way up as well (as there is on the way down) -- this is the big reason the SEC won't allow for an ETF to go forward with Bitcoin due to the amount of manipulation certain exchanges can exert.

That's a challenge for them as manipulation is already here from the start and since they are the government agency who has the power to regulate, they should do the task so this crypto market would be healthy to invest. Investors protection is the main focus, regulation is the only answer.

[1Referee]

Due to some news also price been affected, about BAKKT and idea that bitcoin still have lots to offer in the market. Bitcoin being able to arise from such dump last year means it really have something to look forward with. Being able to transact faster and conveniently makes it more attractive to new investors.

Bitcoin recovering from long lasting bear markets isn't anything new. It did so with very poor fundamentals, and it's doing it with much better fundamentals. That's just how a speculative market works. It's irrational and doesn't really give much about what's happening under the hood. Price action is all that matters.

I'm sure that investors will eventually start to care about fundamentals and have it reflect in the price, but we're probably still far away from that.

As for Bakkt, it's going to be interesting to see if the CFTC jumps in and put a stop to their planned launch. I think Bakkt launching in an already bullish market might stimulate further upward momentum.

[JohnBitCo]

Is there any particular reason Bitcoin has jumped 100%+ in 5 months?

No any particular reason for this. Same as Clasical economic theory : Suply and demand.
What happen on Bitcoin today same as You want to buy product but decrease on market and you add price to high to get it.

I think that's the simple reason of why Bitcoin is going up. And to add the fact that crypto adoption is really growing day by day. More individuals and institutions are learning the advantages of being acquainted with crypto.

Many institutes are adopting crypto. Bakkt has announced that they will start their operation later this year which is the major reason of the current price increase. Also we have Bitcoin halving in next year and soon its fomo will begin to develop and we may see more pump in the bitcoin prices.

[Herbert2020]

I believe Whales have been very active in the market and a lot of new investors have been entering the market in the hope of making profits in future, so the price has been increasing.

Due to some news also price been affected, about BAKKT and idea that bitcoin still have lots to offer in the market. Bitcoin being able to arise from such dump last year means it really have something to look forward with. Being able to transact faster and conveniently makes it more attractive to new investors.

you say this as if bitcoin is rising from the ashes after dying! it was just a big drop, not a life threatening thing. "being able to arise" was because it has always been on a rising mode if you ignore the bubbles! from the first day it came out, bitcoin has been getting adopted by more people every day which meant the price of it due to its limited supply which is being produced at a rate that slows down every 4 years, has been rising consistently.
so if you ignore the bubbles which only slow down and postpone the rise for a while you can see that price has been rising forever and will continue doing so.