Bitcoin made its best entry into a new year for the first time after 2012. After the number 1 crypto currency reached its peak in 2017 and there was a serious collapse for two years, optimism came back to the market.
Bitcoin TSI rose to $ 8900 in the middle of the night, while other big crypto currencies like Ethereum and XRP, 2020’in the first 2 weeks of the investors gave a 20 percent gain.
Bitcoin reached an all-time high of $ 20,000 in December 2017, but fell to $ 3,000 in December 2018. Many experts say this is a bottom, and Bitcoin continued its next rise in 2019.
The recent price increase has been triggered by some developments.
Jehan Chu, co-founder of Kenetic Capital, who invests in Blockchain start-ups, told CNBC, “With the Iranian events and the positive start of CME Bitcoin options, Bitcoin has an explosion effect. Even the first 100 altcoins were positively affected by this explosion. ”
In addition to the geopolitical tensions between Iran and the United States, Chu also referred to Bitcoin options launched on the Chicago Mercantile Exchange (CME) on Monday. Chu said that sentiment is still a factor in extreme price movements.
On the other hand, technical improvements in Bitcoin may be another factor triggering recent price increases. This technical event, known as Halving, will take place in May.
Miners with powerful computer hardware compete with each other to solve the complex math problems needed to validate Bitcoin operations. The miner who has won the race is awarded with Bitcoin by the system.
Miners are currently being awarded 12.5 Bitcoins per block. In order to prevent inflation, the awards are halved for several years. As of May 2020, the prize will be halved again and the miners will now be awarded 6.25 Bitcoins.
This actually reduces Bitcoin supply. Halving lives every 4 years. This is a bit of a bitcoin technical code. The past ‘halving yani, that is, the half-lives, led to significant increases in the price of Bitcoin.
Vijay Ayyar, responsible for the Asian region of the crypto currency exchange Luno, said that the issue of pricing is a controversial issue.
In his assessment to CNBC, Ayyar said, orum I think that the crowds who do not follow the sector are not aware of this. When the price starts to rise as it did last time, the masses will come again. This is expected in May. Every price increase we see causes people to focus on May. ”
According to Ayyar; 15 or 16 thousand dollars for the end of the year can be seen as a reasonable estimate.
Disclaimer: What is written here is not an investment advice; Crypto money investments are high risk investments. If you do not have sufficient experience and experience, it is recommended that you seek help from a counselor. Each investment decision is the responsibility of the individual. CyclicMint and the author of this content cannot be held responsible for personal investment decisions.