Last week, BTC met high expectations mounted by investors. For weeks many experts have predicted and anticipated the $50,000 breakthrough, and this was great news to receive in the crypto world although one that was also hard to believe by a few investors. In the past weeks and days coming up to this point, a few investors were struck by crypto fear and sold off a bulk of their coin holdings. They feared a bearish would follow the BTC upthrust. Alas, those who were patient enough to hang in there till this point are now clinking glasses as they have become partakers of this August party.
Many questions have been raised to experts in the crypto world and the top of the list is; what made this bullish progress different from others thereby making it enough to reach the $50,000 expectations? There are different answers to this question as various factors in play combine to power this move. Firstly would likely be associated with the recovery of the Bitcoin hash rate which was impeded by a recent crypto mining ban in several Chinese provinces and according to some local sources these crackdowns in some provinces were an attempt at power conservation but others say generally the nation is against it, never the less, BTC hash rate have experienced recovery.
Another hidden factor would be the fact that BTC on a regular basis seems to make more decisions that make them more compatible with the business environment and this increased their acceptance amongst different nations and sectors as well. One recent move of the BTC management was running collaborative talks with PayPal to push the frontiers of payments one step further. PayPal now intends to allow their U.K customers to be able to buy BTC alone with some other top coins in the nearest future and deliberations are heavily fired up so, we anticipate progress in the near future.
The large volumes on demand by BTC buyers led to a significant rising force in BTC purchases. As usual, the higher the demand, the higher the price and with the way investors seemed to be buying a lot, the price invariably followed.
Coupled with the high purchase volumes, charts also showed that right from the month of May coming down till date BTC holders seemed to reduce their selling pressure. This is probably because many of them hand anticipated a spike, based on fundamentals and so on. The reduced selling pressure reinforced by increased purchasing pressure did some wonders.
Bitcoin operates something referred to as the BTC Future market which provides access to BTC Futures which enable investors to gain exposure to Bitcoin without having to hold the cryptocurrency. This market experienced a brief squeeze last month for about a week and experts say it had an effect on the price surge in this month of August.
These are just a few factors identified and they all in their own quota influenced the price surge this month. Some analysts are brewing talks of a $51,000 touch soon but for many investors, the joy of the recent wins is an ok victory to last for some time. Some may choose to sell now at a safe position and others may not but either way, we move.