Bitcoin price rally to $10000: the final stand or new beginning?

The king of cryptocurrency Bitcoin (BTC) has recently seen a 30 percent increase in its price. The Bitcoin price rally came right after its endorsement by the Chinese President.

Some crypto analysts believe that the recent price boost will lead to a bull market, resulting in the cryptocurrency’s price to reach twenty thousand dollars ($20,000).

Lightning Network has had a 25 percent decrease in its channels as of Q2 2019. Capacity has decreased by 20 percent.

Google’s search result trends depict that the cryptocurrency’s searches still do not match up to the popularity Bitcoin had gained in Q4 2018.

Bitcoin price and google search - Historical data

Bitcoin price rally and investment trend

According to a Greyscale survey, a large number of people do not plan on buying Bitcoin ever, while 75 percent of the investors connect the cryptocurrency with the crime.

Investors tend to buy the currency, not for its use as an electronic transaction system, but because its value may increase.

Over its journey from being just over $3,200 to the Bitcoin price rally around $14,000, there are no noticeable innovations, developments, or even adoption on a large scale. Bitcoin price is also expected to go up next year when the halving takes place.

Institutional investors possess at a minimum of $22 trillion, which only included the United States registered investment capital. Out of this registered fund, only a negligible amount has been invested into Bitcoin so what is driving the Bitcoin price rally?

Bakkt has made around 1,100 contracts in a day, CME performs 2,000 of these on a day, while Dow’s e-mini contract has an average volume of over 240,000 per day.

Harvard buying $5 million to $10 million worth of tokens from Blockstack, only amounts to a very, very small percentage of its $38 billion endowments.

The multi-billionaire Chief Executive Officer (CEO) of Twitter, Jack Dorsey, only spends a small portion of his worth on Bitcoin, amounting to $10,000 in a week.

But how is all of that really connected with the Bitcoin price rally to be the end or the new beginning? Well, let’s take an example; here is the log chart for Japan’s stock market since 1950:

Japan Stock market - Historical data

Here is the log chart of Bitcoin over the past decade:

bitcoin price chart historical data

Japan’s stock market has been down by 45 percent from its all-time high. Although no government has backed the crypto market during its downfall, unlike it has with the financial markets or limping industries.

Bitcoin price movement has still seen various achievements, including its all-time high daily transaction volume hits, its unconventional hash rate, and mining difficulty, a smooth advancement of its projects due to the increasing public relations.

The current financial systems are unstable, while many countries suffer accelerating inflation, and a lot of banks do not possess the money required to handle a financial disaster.

Technologies and innovations need time to fall into mainstream adoption, which is why many of them fail on the way.