Can Bitcoin Sustain its Positive Price Run?
Matthew Lam May 20, 2019 16:00
After a bear market in 2018, Bitcoin (BTC) price started to bounce back since late March and it once breaks USD 8000 recently. The question now becomes: Can BTC sustain its positive price run? Is the bear market in crypto already ended?
After a bear market in 2018, Bitcoin (BTC) price started to bounce back since late March and it once breaks USD 8000 recently. The question now becomes: Can BTC sustain its positive price run? Is the bear market in crypto already ended?
Fundstrat: Yes! Bull Market is coming!
There are more believers for a crypto bull market following the surging BTC price. The most notable crypto optimist is Tom Lee, Co-Founder of Fundstrat Global. In the recent tweet, Tom reiterated his stance on cryptocurrencies are at a bull market stage and there are 13 signs to support his thoughts.
Image Credit: Thomas Lee Twitter
Notable Increase in BTC On-Chain Transactions
In the third and ninth sign of Fundstrat’s findings, on-chain transactions for Bitcoin turned positive YoY, the first time since January 2018. This is also consistent with the recent findings by Diar research, where the on-chain transaction of Bitcoin in April 2019 is close to the 2017 Dec of 11.2mn transactions.
Image Credit: Diar Research
OTC volume on the rise
Tom’s findings also indicate the surging OTC volumes which can be interpreted as a sign of crypto bullish run. In the conversation with Decrypt, Binance CFO Wei Zhou said that the huge surge in Binance’s OTC trading is the main driver of $78mn profits in Q1 2019, a 66% quarterly increase. In addition, Huobi is the latest entrant in the OTC trading desks as Huobi has seen an “unfilled need” from institutional investors.
Wincent Hung, Director of Genesis Block is also bullish on the price of BTC and cryptocurrencies. He believes that Bitcoin can surpass its ATH price with 3 reasons: Institutional capital inflows, the instability of local currencies in the developing countries and the impact of China-US trade war, which investors start considering crypto as alternative investments.
JP Morgan: No! Beware of the Boom-Bust Pattern of BTC in Late 2017!
Not everyone is bullish on BTC price. It is worth noting that JP Morgan strategists including Nikolaos Panigirtzoglou, believed that BTC has surged beyond its “Intrinsic Value”. This intrinsic value is based on the assumptions of BTC is a commodity, and calculated its “cost of production” with inputs such as electricity expense, estimated computational power and hardware energy efficiency.
Image Credit: Bitinfocharts.com, J.P. Morgan, Bloomberg
JP Morgan concluded:
“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”
Fundstrat VS JP Morgan, Who’s Gonna Win?
Do you think BTC can sustain its price run? To learn more on the reasons for BTC pricing momentum and its impact on mining, register for the event hosted by Blockchain.News to gain an in-depth understanding from insights of our key speakers! See you on 23 May!
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