Is Bitcoin on the Brink of a Bull?

Recent signs suggest the next bull run may lie ahead.

Photo by Hans Eiskonen on Unsplash

BTC on the Rise

Bitcoin’s price has this week increased above 11,000 USD for the first time since passing the milestone in mid July, peaking above 12,250 USD before stabilizing somewhat in the mid to low 11,000’s to end Tuesday. Wednesday has seen it yet again pass the 12,000 threshold, with analysts believing that the hurdle will prove significant in restarting the Bitcoin price rally.

A number of factors contributing to volatility in the currency’s price, such as the U.S. Senate’s hearing over Facebook Libra, led to a decline towards the end of the month, with lows of $9,350 observed. Recent events have caused the cryptocurrency to strengthen in what many are calling the beginning of a Bitcoin bull run.

2019 Growth

The growth is being attributed in large part to the ongoing US-China trade war and worldwide volatility in traditional markets, with global stock markets experiencing their worst day of 2019 on Monday. The Dow Jones experienced a near-900 point loss, while the intraday volatility across broader markets reached its highest level in nearly 8 years. This uncertainty is driving trade for Bitcoin, which, according to Tom Lee of Fundstrat, is “proving itself this year to be a hedge against global risks”.

Bitcoin’s supply cap of 21 million has drawn comparisons to rare metals; a scarcity that contributes to its innate value, and has resulted in calls for its acquisition as a means of diversifying portfolios during times of political and market instability. It is argued that the digital token’s decentralized nature offers a level of immunity against government interference, given that the currency is controlled by no central authority or bank.

Photo by André François McKenzie on Unsplash

Where will Bitcoin go from here?

The signs pointing towards a bull market, combined with current geopolitical instability are leading to an increasing number of people, from traditional investors to more speculative buyers, to view Bitcoin as a valuable asset in a diversified trading portfolio. Recent reports have indicated that the correlation between Bitcoin’s price and gold has almost doubled in the past 3 months, with investors likening its scarcity to the precious metal.

Further commentary on the current position of Bitcoin came from Jeremy Allaire, Circle CEO who argued Bitcoin’s case as “a non-sovereign, highly secure mechanism to store value that can exist anywhere the internet exists”. Echoing these bullish sentiments, but from a different use perspective was Morgan Creek founder Anthony Pompliano, whose belief that Bitcoin’s role may best serve “non-correlation to the rest of the markets, especially in times of global instability”.

While it remains to be seen whose verdict will prove most accurate in determining Bitcoin’s relationship to global markets, the current outlook for the digital token appears to trend upward.

Buying Bitcoin in an Uncertain Environment

Rising interest in Bitcoin may bring rising numbers of investors into the cryptocurrency space. For those new to the world of investing and cryptocurrencies, what may at first appear an exciting prospect can prove daunting when money is on the line. It can prove difficult to time investments and trades in a logical way, and though exciting, sudden rises and falls in price can lead to emotion-led investing. Traders may use tools to time investments through trading platforms such as Coinberry.

Coinberry’s Autopilot makes buying Bitcoin easier and less risky
Coinberry’s Autopilot feature automates crypto purchases

The company’s recently-introduced feature, Autopilot, allows users to set up automatic Bitcoin purchases over a set period. Users decide the amount and frequency (whether $20 or $2000, daily, weekly, or monthly) and Coinberry facilitates the purchases automatically, according to the user’s instructions. Using dollar-cost averaging, the platform makes Bitcoin purchases on a set schedule at a set dollar amount. Autopilot is one of the latest additions to the Coinberry platform, along with Coinberry Pay and Bitcoin Cash.

Disclaimer: This content is for informational purposes only and should not be used to make any financial decisions or serve as investment advice.

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