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Bitcoin resumes bullish trend


The beginning of this month was one of the hardest faced by Bitcoin (BTC) thanks to the Coronavirus, making investors mortify themselves for the losses. However, we could be one step away from Bitcoin resuming the uptrend once and for all.

After the chilling 50% drop, Bitcoin has managed to recover on its own, picking up the uptrend. And, the United States’ stock market has also improved, probably thanks to the measures implemented by the country’s Federal Reserve.

In this way, thanks to the increase that the price of BTC has experienced in recent days, it has returned the optimistic air to the crypto industry.

Bitcoin has an assured uptrend

What happened at the beginning of the month is explained by the panic and uncertainty caused by the Coronavirus that led investors to prefer cash.

However, what happened in the financial markets of the United States raised fears of a possible financial crisis and, therefore, forced the Federal Reserve to apply a fierce monetary policy to contain the markets.

It is precisely because of the actions taken by the United States Federal Reserve that Bitcoin resumes the uptrend

Likewise, Bitcoin had been showing to be highly correlated with the movements of the stock market. Thus, investors’ interest in liquidating their positions for cash also hurt the crypto market.

Chainalysis recently released a report in which it pointed out that institutional investors were to blame. The report concluded that although small investors also liquidated positions, the big shots transferred between 10 and 1,000 BTC.

This means that institutional investors contributed around 70% of the total BTC sent to crypto exchanges.

However, David Grider, Fundstrat’s digital strategist, communicated his skepticism about this through an interview with CoinTelegraph.

Grider explained that traditional or institutional investors are not the only ones who can drive the market with high-volume operations. In this way, it ensures that although there was a significant incorporation of this type of investor in 2016/2017, it was not very significant.

So what will drive Bitcoin?

Certainly at this time, thanks to the conditions generated by the Coronavirus, people prefer to have cash. However, the Covid-19 pandemic will pass, and then what will remain? Will Bitcoin definitely resume the uptrend?

The monetary policy carried out by the Federal Reserve consisted of injecting liquidity into the economy, but what is the impact? Well, it is most likely to result in a loss of value for cash.

So, as Simon Peters, eToro Executive, stated in the same interview with David Grider, what will people do with all that cash when the situation calms down?

The situation may be as follows: Cash loses value while Bitcoin recovers on its own. This is what has led experts to ensure that BTC is the haven for what is coming, and therefore for it to resume the uptrend.

In fact, Travis Kling, Director of Investments at Ikigai Asset Management, assured that Bitcoin “It is an insurance policy against the largest monetary experiment in human history.” This comment was accompanied by a chart of recent US annual budget deficits. via Twitter.

And it is that, while the United States injects liquidity, Bitcoin is preparing for its inflation to fall to 1.8% per year after the Halving that is about to occur.

It is precisely because of this event that Blockstream’s Samson Mow recently claimed via Twitter that Bitcoin will again trade above $ 10,000, securing the next uptrend.

We cannot believe that Bitcoin and cryptocurrencies are the first choice for most investors. However, that does not mean that it is not an interesting contender for others.

In this way, it seems almost certain that Bitcoin will resume the uptrend. However, we are in a market in which the future is a mystery.

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