Bitcoin (BTC) extended its rally to as high as $7,500 before making a small retreat. Despite predictions that the bear market may return, BTC managed to rise by more than $2,000 net in the past month, despite the lack of positive news. Here are five factors that may be contributing to the latest rally:
Higher exchange activity
The 2019 rally for BTC is quite different from the December 2017 price climb. In the past year, multiple exchanges launched and went on to increase their activity and trading volumes. The boost from increasing trading volumes, arbitrage opportunities, and higher liquidity is generating conditions to make BTC markets more predictable. Additionally, an ecosystem of stablecoins, with Tether (USDT) as its bellwether has made international trading easier. While USDT holds risks, it is also a tool that has managed to increase liquidity for both BTC and for altcoin markets. In the past month, the share of USDT trading for BTC remained high but ultimately led to an inflow of dollar-based traders.
Thresholds on moving averages
BTC prices are gaining slowly, but also triggering significant events in crossing short-...