MAJOR REASONS FOR THE BITCOIN BULL RUN IN 2019
Bull run generally is a term used to refer to a period of time when prices rise in a financial market. The phrase “Bull run” or “Bull market” is often used in the stock market, used to refer to anything that is traded such as bonds, currencies etc.
Bull run in the cryptocurrency is used to describe a rise or growth in cryptocurrency prices. As noticed between April and May 2019, there was a bull run in bitcoin where it went from around $5000 to $7000 and then $8000 within days. What is the cause or reason for this situation? Everyone is asking.
We’ve been able to identify some major cause of this bull run. They are
Institutionalization of the cryptocurrency:
Joseph Young who is a journalist and cryptoanalyst tweeted-
“Crypto made more progress in institutionalization in 12 months than in previous 9years.
- $40M from 2 public pension funds in the US
- $237M invested by institutions through Grayscale
- Major exchanges operating as custodians.”
The institutionalization excited the cryptocurrency market. it’s exciting to know that institutions are bringing to understand and effectively used the space.
Increase in Bitcoin in demand due to Currency Crisis:
Venezuela, after suffering the worst period of hyperinflation since World War Two, has seen its currency rendered practically valueless. Things as basic as toilet paper, medicine have become unbearably unaffordable. This has led to an increase in crime in the country and left most of its citizens with no choice but to flee.
As a result of this Venezuelans are currently taking refuge in the most popular cryptocurrency “Bitcoin”. Now it’s an alternative to the Venezuelan bolivar. This has increased the demand for bitcoin overtime.
If other countries also experience the same currency crisis as Venezuela, they could also embrace bitcoin which will lead to a crazy demand of bitcoin then making the price upsurge. This is the “Bull run” we’re talking about.
Bitcoin as a Means of Payment by Retailers:
The first big online retailer to accept bitcoin as a means of payment was “Overstock.com” in January 2014. The company allowed customers to pay for items ranging from phone gadgets to home equipment with Bitcoin, Ethereum, Litecoin, Dash, Monero and Bitcoin cash.
Other countries like Newegg, eGifter, Shopify stores, Dish, also Microsoft and a lot of them out there have started accepting cryptocurrency, the number keeps increasing.