A $1,000 increase in three days reveals the three reasons why Bitcoin hit a new high in 2019

Author: Mashaka

It took Bitcoin 13 months to reach $9,300 again after May 2018, setting a new price high in 2019.

However, just last Friday, the price of Bitcoin was still hovering around $8,200. Unexpectedly, in less than three days, the price of one Bitcoin rose by as much as $1,000.

Some time ago, the cryptocurrency circle was dominated by the emergence of altcoins. The surge in recent days has made Bitcoin holders proud. So, what factors are driving Bitcoin to a new high in 2019 this time?

Facebook: Changing Perceptions and Attention

Last week, the Wall Street Journal published an article saying that Facebook's cryptocurrency will be jointly managed by dozens of institutions, including the exchange Coinbase, the payment industry's Mastercard, Visa, and Paypal, the e-commerce industry's Ebay, the ride-hailing platform Uber, etc. In short, each of them has a considerable background.

(Facebook's cryptocurrency partner)

Giants are indeed giants, and there are a lot of consortiums behind them when they issue a coin. This year, Facebook has attracted the attention of people in the cryptocurrency circle. In one day, that is, on June 18, this highly anticipated cryptocurrency will release a white paper to officially unveil its mystery.

We mentioned in previous articles that Facebook, as a social networking giant, has 2 billion users all over the world. The scope and number of users are beyond the reach of any of the ten cryptocurrency circles.

For investors seeking returns, the currency issued by Facebook is a stable currency anchored to a basket of currencies, and it does not have higher investment value than other altcoins.

But in terms of impact, Facebook's entry into the cryptocurrency industry will bring countless positive impacts to the entire industry, allowing countless ignored, hesitant, and skeptical outsiders to re-examine cryptocurrencies and rethink the value of Bitcoin and the industry it is in.

Bakkt: Starts Bitcoin Futures Testing

On June 13, Bakkt’s chief operating officer announced in a blog post: “On July 22, Bakkt will launch the Bitcoin futures test.” After a year of waiting, the Bitcoin futures exchange has finally been finalized.

The biggest highlight of the Bakkt platform is its strong background. It was created by the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. During the bear market, it received US$182 million in financing from 12 well-known investment institutions such as Boston Consulting Group, Microsoft Ventures, and Horizons Ventures, and has reached cooperation with large companies such as Microsoft and Starbucks.

It is not difficult to find from the investment and cooperation institutions that both inside and outside the circle have high hopes for Bakkt. Once Bakkt is officially approved by the regulatory agency CFTC, it will attract more traditional financial institutions to enter the market and attract countless investors to enter the market for trading.

Unlike CME and the soon-to-be-defunct CBOE futures contracts, Bakkt uses real-time Bitcoin settlement. After the contract expires, users must use Bitcoin instead of U.S. dollars to complete the settlement. This change will directly increase the demand and liquidity of Bitcoin and greatly reduce the speculation and manipulation space in the futures market.

Tightening US regulations: Altcoins have the greatest impact

Last Friday, Binance announced that it would stop providing services to US users from September 12. More than 20% of Binance's traffic comes from the United States, with at least 30 million US users. Affected by this news, BNB fell 10% in 24 hours.

Although Binance later announced that it would not completely withdraw from the U.S. market and would launch a trading platform designed specifically for the United States, Binance US, it still could not stop users from being angry about Binance's withdrawal, and the liquidity of some altcoins was also affected.

According to user statistics, cryptocurrencies such as AE, HOT, LINK, NANO, ONE, VET and WTC are not yet able to provide trading channels for US users. Some altcoins such as ARK, BTT, IOTA, PIVX and ZIL can only be traded on a compliant US exchange.

No one will give up the big pie of the United States if they have to. But compared with interests, survival is more important.

In addition to Binance, another exchange that has been heavily affected by regulation recently is Bitterx. Starting from June 28, Bittrex began to block 42 altcoins for US users, including some common mainstream altcoins.

It is a fact that the United States has tightened its regulation on the cryptocurrency industry. Exchanges can choose to flee or delist, and altcoins have become the biggest "victims" of this round of regulation. On the one hand, liquidity has decreased due to changes in exchanges, and on the other hand, they face the risk of being classified as security tokens.

But for investors, no one wants to have no place to trade the altcoins in their hands. At this time, Bitcoin plays a safe-haven role. Users' demand for Bitcoin increases in the short term, which also has a phased impact on the price of the currency.

Giants are entering the market, regulations are clear... Of course, the real reasons that drive the rise of Bitcoin are a matter of opinion. Although the market is unpredictable, we are very happy to see that the currency circle is being "bombarded" by more and more positive factors.

Also breaking through $9,000, it took Bitcoin only 22 days in 2017 to reach a high of $20,000. We cannot know to what extent this round of bull market will bring surprises, but what is certain is that cryptocurrency has taken another big step towards top capital and mainstream people.