After a considerable rise, in the past two weeks the current Bitcoin price is at 9,240.21. The value of the new price has continued to surprise traders and the interested community. Some of the cryptocurrency’s behavior is unexpected, especially at this time of a global 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 their 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 is a chance 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 the form of a digital currency. However, there is hardly any evidence to suggest that the new market entrants are specifically from the stock and indices market.
There was speculation of 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 possibly 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 or financial institution. However, a major factor that plays in the value of the coin is the social media sentiment. The new sentiment argues for a message of positivity, as recorded by cryptocurrency fanatics on Twitter. Such an outlook could have sent investors as well as Bitcoin holders on an optimistic edge. The impact of the outlook on the actual currency is that traders are looking into buying. The resulting buying pressure build-up has seen prices rise to even higher limits.
With any change, investors are kept surprised, with a little shred of explanation for 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, prices have risen beyond the mark to indicate that the power of positive sentiment is higher than anticipated.
Social media's impact on the price of bitcoin goes beyond the influence of sentiment. The upcoming 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 bitcoin. The result of a surge in the number of users is a rise in the rise in demand for the currency. Price hikes and increased trading volume in the digital currency are the obvious outcomes. The question of whether prices will hold for long at new highs remains a matter of speculation.
Beyond the new highs, there is a chance that prices will rise to even higher values. Actual halving is yet to occur and a rise will definitely be recorded. If the speculations have sparked a rise, the actual halving event will revitalize the rise. People don't want to miss out on the new market entry for 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 the majority of the cryptocurrency experts. The expected 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 halving are key to the changes. Social media discussions and trends regarding Bitcoin are the new force pushing the markets to new highs. Prices could continue to rise for the foreseeable future, as long as positive sentiments continue.