What is Behind Bitcoin's Price Rally - My Opinion
This post is a comment I dropped as a reply to a post originally written by Crptobeadles and titled What's Behind Bitcoin's Price Rally
No doubt, I also have a positive feeling this is the start of a new era in the emergence of Bitcoin and cryptocurrencies at large and I strongly believe the days of $3,000 to $6,000 BTC is a thing of the past just as you said.
The writer gave four good reasons as to why he thinks BTC has been experiencing an upsurge in Price for the past few months. Even though those reasons are all sentiments, I think they are very strong and well-deserved reasons and I sure inclined my head up and down in agreement to each of the reasons you gave while I was reading this interesting topic.
I think there might be more to the reasons why Bitcoin has been experiencing a surge in Price in addition to the ones you stated above. As we all know, there have been a divided sentiments amongst investors and crypto enthusiasts around the recent Bitcoin's price rally. Different people have been coming up with there own sentiments just as the writer has done. However, I think the Bitcoin's price rally can ultimately be said to be based on seven broad factors in addition to the ones you've given (of which I will be stating another three factors based on my own sentiment).
Manipulation of Price by Whales
I was going to buy and add to my Bitcoin portfolio, then a thought came into my mind and I asked myself "What if this spike in Price was as a result of a whale manipulation who wants us to get trapped in the trade for them to make more profit from our own fear of missing out (FOMO)?" Despite the fact that this is just my own personal thought, am sure you will all concur with me that it is a valid sentiment that is capable of acting as a major factor behind the Bitcoin's price rally.
Accumulation of Bitcoin by Investors
Owing to the fact that the Bitcoin reward halving is scheduled to happen in less than four months from now, I want to believe a good number of investors must have been accumulating Bitcoin, most especially because history have proved to us that there is always a surge in the Price of Bitcoin whenever a Bitcoin reward halving occur. Since investors are accumulating, then there will sure be more demand than supply which in turn triggers a surge in the Price of Bitcoin.
Rising Hash Rate of Bitcoin
I was having a chat with one of my friends on Telegram few days ago, and we were discussing about what might have triggered the surge in the Price of Bitcoin for the past few weeks, and he did came up with a reasonable point saying "The Bitcoin's price rally might have been as a result of the rising hash rate of Bitcoin which has hit all-time high over the past few days. I asked him how and why? He went further to say this is because Bitcoin's increasing hash rate has created a potential linkup between Bitcoin and the necessary features it needs to act as a digital gold. I tried doing a little research on it and found out that history have it that "rising hash rate has always triggered an increase in the price of Bitcoin".
In conclusion, what if the factors behind the Bitcoin Price rally is a combination of all the four factors you gave, in addition with the three factors I gave? Even though It's something that is very possible, no one knows for sure. It's all sentiments. I think what matters most is that we continue to experience this surge in price whatever the reasons behind it might be. I hope to see the price of Bitcoin hit $100,000 after halving. All in all, I see us reaching mass adoption pretty soon in the nearest future.
Thanks for reading!
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