Bitcoin has gained more than 180% since the beginning of this year; the bullish run came at the wake of the bear market. The apprehensions about further downside grew deep in January and February. The cryptocurrency markets, however, reversed its momentum and has been on the rise since then. The total market capitalization of cryptocurrencies gained about 150% from YTD.
Bitcoin Price Chart Since the Beginning of the Year 2019 (TradingView)
This is a 15-month high in Bitcoin with maximum gains coming around in the last two months. Various reasons have been cited to explain the rise; rising institutional interest with Bakkt, Fidelity, and CME, increasing momentum with mining and adoption, and a general increase in education about Bitcoin.
According to Mati Greenspan, Senior Market Analyst at eToro mentioned in a mailer,
“A rally of this magnitude doesn’t usually happen based on one catalyst. It’s a general change in sentiment in a market with extremely limited supply.”
Moreover, the traders who were expecting a bear market hadn’t left the market but were waiting on the sidelines for the bullish confirmation. The idea prevalent in the market was buying back cheaper Bitcoins at the bottom. However, Bitcoin has surged through all significant bearish resistance levels at breaking above $11,000.
The transaction volume of Bitcoin has also been on the rise with the number of active addresses surpassing 1 million.
On-Chain Bitcoin Transaction Volume in USD (Source: Coinmetrics)
Bitcoin, an Emerging Global Asset
The economic unrest is also adding the value of a way opportunity cost than Gold if one invests in Bitcoin.