Another week, another Bitcoin [BTC] bump. This trend of the cryptocurrency week beginning with an upswing has become increasingly familiar since the turn of April. However, the recent jump over $8,700 has been credited not to external forces, but to ones within the cryptoverse.
On May 26, Bitcoin exhibited yet another notable price incline, rising above $8,000 and is now on the verge of breaking $9,000, with no significant announcement playing anchor and no correction playing spoiler. With the most likely reason for this prolonged and source-less rise being the imminent Bitcoin halving, several analysts contend that it is indeed a supply push.
Mati Greenspan, senior market analyst at eToro, in his daily newsletter, contends that the supply side accounts for the recent surges in Bitcoin. He tweeted,
“There’s already a shortage of bitcoin in the world and with the halving event coming up next may, the countdown to even less supply has already begun.”
Contending that the general public interest around Bitcoin manifested via Google search results has been “relative tame,” despite the cryptocurrency rising to a 12-month high. He also pointed out the performance of crypto-to-crypto exchanges and its outpacing of fiat-to-crypto peers.
As several in the financial mainstream have stated, the rise of Bitcoin is due to the positive leanings and adoption of institutional players like JP Morgan, Fidelity, and Nasdaq. Greenspan stated that these players are “largely uninvolved,” referencing an article titled, “Institutions Could Push Crypto Past A ‘Point Of No Return.”
The markets analyst stated that the aforementioned players will “come online soon.” However, they are not here yet. Currently, the only barometer of institutional interest is Wall Street’s trading activity, as represented by CBOE and CME futures contracts, which are cash-settled.
Weighing these points, Greenspan stated that the “base assessment” is that the current bullish swing is internal, rather than due to external factors. In his words,
“This means both investing in crypto as prices seem to be low for now but also could be coming from developing countries.”
Finally, speaking on the point of FOMO [Fear of Missing Out] as being a contributing factor to the current BTC rise, Greenspan believes that this anticipation and anxiety fueling the price rise could be emanating from “20 or even 50 key regions across the globe right now.” However, he did not elude to the coordinates of the same.
Needless to say, the usual caveat applies to all Greenspan perspectives,
“Usual disclaimers apply. This is not trading advice. Past performance is not an indication of future results. Cryptoassets are risky. I don’t move the market. #DYOR”
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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.