Here is why the winds go back to blow in favor of bitcoin


Article published in Milano Finanza – May 8, 2019

This is a record. Bitcoin never exceeded the $ 5,800 threshold before last Friday this year. This strong rise in bitcoin price has revived nearly all other criptocurrencies such as Ethereum, Ripple and Cosmos. Total market capitalisation has risen by $ 170 billion to $ 187 billion in a week as a result.

This recovery has been anticipated by authoritative experts and has turned out to be quite last Friday, the day when the Wall Street Journal published an article about the will of Facebook to mine its own cryptocurrency, or more precisely a stablecoin pegged to the US Dollar with a ratio of 1:1. According to the Wall Street Journal, Mark Zuckerberg is going to invest $ 1 billion, involving Visa and MasterCard.

We are in a new golden age about digital currencies. Analysts believe that this positive trend will be extended in the long term. Tom Lee, founder of Fundstrat Global Advisors, has identified 11 signals: for example spread of blockchain, how institutional investors trade crypto and some technical indicators. All this, he said, goes to show that bitcoin’s not done climbing, and that these catalysts are “likely” to drive it to new all-time highs “around” 2020.

Not surprisingly, Amazon Web Services (AWS), a subsidiary of Amazon that provides on-demand cloud computing platforms, on May 1 made available its service Amazon Managed Blockchain (AMB) to allow customers to implement blockchain networks in their own organisations cheaper and more quickly.

Bitcoin’s climb confirms, first, that concerns about volatility have been overcome. The trend aggressive trader is constant: a lot of people have celebrated the overcoming of the quota $ 5,000 at the beginning of the last April, now everyone knows that the crypto market is mature and reliable.

At a time like this, investors usually buy. According to Lee, institutional clients are the top traders. First EU regulated investment fund ConsulCoin Cryptocurrency Fund, operating in cryptocurrency and blockchain areas, is reserved for institutional players. Consulcesi Tech serves as lead advisor. Physiological markdowns there will be after this rally, but it’s time to earn cryptocurrencies waiting for Bitcoin overcomes $ 6,000.

International context is assisting Bitcoin & Co. spike. The crisis of traditional currencies in Turkey and in Venezuela caused the explosion of digital coins in these countries. On the horizon there are superpowers such as United States, Russia and Great Britain thanks to several regulatory activities in the field. Italy is going to play an increasingly important role in this industry also thanks to a consultation released by Consob (Italian companies and exchange commission) about ICOs (Initial Coin Offering) and crypto-assets exchange. It will end in two weeks.

The main question concerns the future of Bitcoin. There is no reason, historically, to predict the decline, while from the technical point of view, there are undoubtedly comforting signs. The cryptocurrency has reached the so-called “Golden cross” last March, which is the basis of the boom in the last two months. Institutional clients, as mentioned earlier, are increasing and Lightning Network platform has promoted the simplicity and the accessibility of monetary assets. Furthermore, retail traders trust again the marketplace and invest in it. Sometimes numbers are as relevant as perception of the phenomenon itself. About the sentiment, there are approximately 22,000 tweets about Bitcoin per day. Sentiment analysis by numerous research companies tells you that the trust – or distrust – is able to influence the crypto prices more than shares.

The increasingly encouraging opinion by social media is simultaneously both a precondition and an effect of this rally. Tweets on this item are constantly increasing this year just like crypto assets value. In conclusion, you have to pay attention both to marketplace and social media.