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Causes and effects of cryptocurrency spring on trading floors

05/24/2019
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Cryptocurrency winter is over. It is symbolic that this happened in the spring of 2019, when the BTC / USD pair was able to grow by more than 100%. Now experts are trying to understand what exactly was the impetus for growth, what it will lead to, and where the cryptocurrency rate will stabilize in the coming months.

The reasons for the growth of the cryptocurrency market

It is not a secret that one of the major investors gave a signal for the growth of Bitcoin. At the beginning of April 2019, large purchase orders were placed at three cryptocurrency trading floors. A total of 21,000 btc was acquired, which then required an investment of $ 100 million. This is what started the procedure for starting deferred demand.

In two months, an anonymous buyer can sell his package of assets for more than $ 200 million. That is, he will definitely be able to earn at least 100% of his income.

Some experts may call such a movement speculative, but the situation is somewhat more complicated. Even then, the acquired package accounted for only 0.1% of the total capitalization in the cryptocurrency market. That is, even such a large purchase could not change the mood of investors. Most likely, it became a catalyst. Just the market was already ready to start the race for buying bitcoins. And someone gave the signal to start action.

Consequences of the cryptocurrency spring-2019

According to reports to the cryptoexchanges, the number of trading accounts has increased dramatically. So, on one of the largest sites in Japan, this figure increased threefold in May compared with March. And here it is noted that a significant number of new customers have never used Bitcoins and other digital assets before.

The Japanese exchange Coincheck reports that a surge in the number of new users occurred on May 14. On this day, 7 times more new accounts than usual were registered.

Experts attribute this growth to increased trade tensions between the United States and China. This is the opinion expressed by the head of the Digital Currency Group, Barry Silbert. In his opinion, cryptocurrencies could become a safe-haven during international crises. At the same time, the situation is somewhat paradoxical. Officials of all countries actively convince citizens that investing in cryptocurrency is the most risky. However, it was this asset that was able to press gold and securities as a hedging instrument.

What to expect next

It is not yet possible to say what the cryptocurrency spring-2019 will lead to. It is already clear that over the past year the situation has changed. Bitcoin and other financial assets proved their viability, new categories of investors began to show interest in them. Individuals who have never placed funds in cryptocurrency have begun to show increased interest. Major players also did not stand aside.

According to the results of the first months of 2019, the platforms for over-the-counter cryptocurrency trade showed the maximum growth. In some cases, it reaches 800%.

The famous cryptocurrency trader of the New York Mercantile Exchange Anthony Grisanti expressed the opinion that Bitcoin takes time. Most likely, the asset will be consolidated in the range of $ 7-8 thousand, after which it will continue to grow. At the same time, he recommends keeping in it up to 5% of the total capital. It is clear that the blockchain technology and cryptocurrencies still have many problems. But now almost no one risks calling them a bubble.

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