Why is the bitcoin price going up? Until July 22, it had been consistently below $ 9,400 for an entire month, but as of July 23, it started to rise.
It first rose, and then stabilized for about three days, around $ 9,500 or $ 9,600, but yesterday, Sunday, July 26, it first rose to $ 9,700, and then, with a single spike that lasted a few minutes, it exceeded $ 10,000 for the first time since the beginning. of June.
It then dropped to just under $ 9,900, and then rose again overnight to hit $ 10,600.
In other words, the price of bitcoin in the last seven days has increased by more than 15%.
In reality, not only has the price of BTC increased in recent days, because the price of ETH has somehow made a similar path, albeit even more pronounced, and started a few days earlier.
On July 22, ETH was worth around $ 240, but by July 23 it had already risen to more than $ 270. After a short and contained retracement, it started to climb again, surpassing $ 280 the next day.
On July 25 it was also above $ 290, while on July 26 it was already above $ 300. Today the price of ETH is between $ 320 and $ 330, with a gain of more than 30% in less than a week.
On the other hand, overall market capitalization in the cryptocurrency sector has increased over the past seven days from $ 270 billion to almost $ 310 billion, an increase of almost 15%, while BTC's dominance has fallen. from 62% to 60%, before increasing to 61%.
In other words, this is not an increase in the value of bitcoin alone, but it is the entire cryptocurrency industry that is growing these days.
Conversely, the fact that ETH has grown earlier, and more, than BTC seems to suggest that the reasons for this growth are shared by various cryptocurrencies, and are probably not specifically related to Bitcoin.
Why is Bitcoin rising according to experts?
Anthony Pompliano On Twitter he pointed out two aspects that could explain the growth of the bitcoin price.
First, it revealed that inflation hedging activities are increasing in the financial markets because many investors know that "you can't print trillions of dollars without impacting a currency"
Then also increased dose saying:
"He Gold has already risen 26% in 2020 and Bitcoin is up 43%.
This is after the United States introduced about $ 2.5 trillion in monetary stimulus.
Republicans want another $ 1 trillion, and Democrats want about $ 3 trillion more.
They have not finished printing. Bullish for gold and Bitcoin ”.
This could explain the increase in the value of bitcoin, but not that of ETH or other cryptocurrencies.
However, Jameson Lopp it also adopts the hypothesis of monetary stimuli as the cause of this increase.
However, there are obviously other hypotheses.
One of them takes into account the fact that some tokens, particularly those related to DeFi, which have grown a lot in value in recent days, have fallen slightly since yesterday. According to this hypothesis, speculators who have made a good profit thanks to the sometimes powerful increases in these tokens in recent days, since yesterday have monetized these profits, reinvesting part of the profits in bitcoin.
In fact, the moment shows only the start of bitcoin price growth after the start of Chainlink's price decline, for example.
However, these two different assumptions could also be related, that is, the first could be a consequence of the second.
According to the financial analyst and independent trader Federico IzziThis is not an unexpected increase. The lateralization period has now lasted almost three months, and the daily volatility index has recently fallen to its lowest level for 4 years.
This, and other fundamental metrics, suggested a possible upward move, thanks to the numerous signs of strength expressed by the Bitcoin network itself since January, if not December 2019.
In fact, as early as February, the price of BTC had reached levels similar to today, but then collapsed in mid-March along with the global financial markets due to an exogenous event such as the coronavirus pandemic that caused a liquidity crisis that forced many Bitcoin owners to sell.
Massive growth in the capitalization of stable coins Over the past few weeks at over $ 12 billion this was also a clear sign of directionality, and this, coupled with the growth in the value of ETH and DeFi tokens, helped to drive the price of BTC above $ 10,500.
The fact that gold is also showing significant price growth suggests that many investors are currently looking for a store of value, and recent increases are nothing more than confirmation that all the upside signals of recent times have been motivated.