Why is the Bitcoin price rising slower and slower?

Bitcoin’s potential short and long-term growth prospects can be seen in the ongoing price activity. The BTC price is facing increasing resistance on the way up. Volatility decreases over time. But what does that mean for Bitcoin’s prospects?

Where’s the moon going please?

In his latest article, entrepreneur, engineer and Bitcoin optimist Harold Christopher Burger analyzed in depth the supposed reason for the stunted Bitcoin market growth. According to his conclusion, two things are clear about Bitcoin’s recent price trend:

• The arguments for the falling annual returns of Bitcoin are getting stronger.
• Bitcoin price fluctuations become less extreme in the short term

Investment capital is a plausible explanation for the observations. It takes more and more fiat currency to move the price of BTC up. Apparently, it is becoming increasingly difficult to find the necessary capital.

In the words of HC Burger:

“Moving the price of Bitcoin from $ 0.1 to $ 1 was possible with a relatively few dollars. The shift in Bitcoin price from $ 1,000 to $ 10,000 required a lot more capital. This effect slows down Bitcoin’s potential growth in both the long and short term.”

The future bull markets are expected to be much slower and long-term Bitcoin yields to be lower, the study released.

Capital to move bitcoin price is not readily available

Gone are the days when it was relatively easy to push through significant changes in Bitcoin pricing. BTC trading was physically not possible until July 17, 2010. 

When the Bitcoin price was around $ 0.1, increasing the BTC rating by 100 percent required less capital. The situation was not the same as Bitcoin price rose from $ 10,000 to $ 20,000 in late 2017, early 2018, and early year.

Although the rallies were fueled primarily by retail investor interest and the ICO boom, capital inflows were plentiful, resulting in a huge increase in the total crypto market cap to around $ 800 billion.

This is now highly unlikely, as it is becoming increasingly difficult to attract more people to invest in Bitcoin or find exceptionally wealthy investors. Although institutional investments in Bitcoin and the crypto market are expected to increase many times over, according to well-known global fintech leaders.

Not only long-term price growth, even short-term explosive rallies will decrease as volatility decreases and bull markets take longer to develop.

There is light at the end of the tunnel

The analysis mentioned relies heavily on the Bitcoin pricing model, which takes growth into account as yield decreases. This also overrides all outrageous BTC forecasts, as they assume (beyond the top forecasts) that the Bitcoin price will never go down and will continue to grow.

However, not all hope is lost. Even though the pricing model doesn’t guarantee gigantic returns, Bitcoin will continue to grow and outperform most traditional investments.

Bitcoin’s amazing growth in the past decade has been discussed by Bloomberg today. This is reminiscent of the fact that despite numerous bull and bear market cycles, Bitcoin’s long-term promise remains strong for a considerable period of time.