After a considerable rise, in the past two weeks the current Bitcoin price is at 9,240.21. The new price value has continued to surprise traders and the interested community. Some of the cryptocurrency’s behavior is unexpected, especially at this time of a world pandemic. There are several explanatory ideas that attempt to account for the upward change in the value of Bitcoin. While some ideas make complete sense, some are just out of place and illogical.
The first speculation is the recent drastic fall in prices of oil and stocks. Some of the commodities whole value has fallen make up global most valued commodities. As such, it could be possible that investors are looking for other stable alternatives to secure their wealth. There are chances that the economic changes could see a rise in the number of bitcoin holders. These are people who are only interested in securing their wealth in form of the digital currency. However, there is hardly any evidence to suggest that the new market entrants are specifically from stock and indices market.
There are speculations halving, which was supposed to cause massive swings in the crypto’s value. The idea could explain the most unexpected changes that are occurring with the cryptocurrency’s pricing. However, this idea was not supposed to have such a great impact due to the economic slump caused by the pandemic. Therefore, the surge in prices, especially in the past few days could not possible be as a result of the momentum from halving. The sentiment is shared by a majority of the large traders who indicate that the halving is irrelevant. However, current data seems to indicate something else that is against their sentiment.
Bitcoin is entirely uncontrolled by any political and financial institution. However, a major factor that plays in the value of the coin is the social media sentiment. The new sentiment argues a message of positivity, as recorded by cryptocurrency fanatics on twitter. Such an outlook can has sent the investors are a well as Bitcoin holders on the optimistic edge. The impact of the outlook to the actual currency is that traders are looking into buying. A resulting buying pressure build-up, has seen the price rise to even higher limits.
With any change, the investors are kept surprised, with little shred of explanations of the changes. An advanced google search regarding the volume data on the anticipated halving indicates that there is a positive sentiment regarding the upcoming halving. The anticipated price rise was up to $ 8000 for every unit of bitcoin. However, the prices have risen beyond the mark to indicate that the power of positive sentiment is higher than anticipated.
Social media impact on the price of bitcoin goes beyond the influence of sentiments. The upcoming having event has sparked a huge social media discussion. One of the results of such discussions is an increase in the number of people who use the bitcoin. The results of a surge in the number of users is a rise in the rise in demand for the currency. Price hikes and increase trading volume of the digital currency is the obvious outcome. The question of whether the price will hold for long at the new high remains a matter of speculation.
Beyond the new high, there are chances that the prices will rise to even higher values. The actual halving is yet to occur and a rise will definitely get recorded. If the speculations have sparked a rise, the actual halving event will revitalize the rise. People do not want to miss out in the new market entry for the bitcoin. This fear, typically called the fear of missing out could be the main cause of the unexpected rise in the price of the currency.
A new bitcoin value of above $9000 is quite surprising to majority of the cryptocurrency experts. An expected the impact of halving, amidst a global pandemic does not sufficiently account for the change. The actual halving process does not seem to carry enough gas to support the current momentum. Certainly social media discussions and positive sentiments about the halving are the key to the changes. Social media discussions and trends regarding Bitcoin is the new force pushing the markets to new highs. The prices could continue rising in the foreseeable future, as long as the positive sentiments continues.