Nov 18, · The Mayer Multiple flashed similar values around bitcoin‘s second mining reward halving in July Back then, bitcoin was trading at $ and . Bitcoin (BTC) has been named as one of the 'strongest drivers' for crime by Menny Barzillay, the head of cybersecurity consulting at Herzog Strategic. According to Barzillay, who joined other pundits during an event at Tel Aviv University, the leading cryptocurrency is dangerous because it allows bad actors to send money on the internet in a. Bitcoin’s three key drivers mean one thing for bitcoin prices will depend on the economy. Fast-improving economy. Cryptocurrency demand increases, risk-taking up, technical factors positive.
Bitcoin market drivers3 drivers of bitcoin prices in - SectorWatch - MarketWatch
Technology has undoubtedly played a helping hand. Gone are the days of setting up individual wallets for each currency. Coinbase and Robinhood , two major U. Investors can also easily buy index-linked products. What about comparisons to gold? Do investors also see bitcoin as an inflation hedge and a safe-haven asset class?
Instead, it does the opposite: its value tends to go up in confident bull markets and fall in fearful bearish ones. Technical analysis requires less efficient markets to work. A study by the U. Fortunately for cryptocurrency investors, BTC today still resembles the inefficient systems of the s.
Bitcoin trades on multiple disconnected exchanges, making it difficult to determine its exact price at any given moment. And investors still routinely accuse market makers of manipulating prices. These factors make trend-following an essential tool in tracking the self-reinforcing prophecies of bitcoin price. Below is a graph of RSI, a standard mean-reversion indicator. A more aggressive approach would have pushed returns even higher.
Which path with bitcoin take? If these expectations play out, bitcoin investors will see good times ahead. But if the economy suddenly grinds to a halt, then bitcoin price will certainly fall. As trading matures, technical factors will eventually take a backseat in determining bitcoin price. In their place, fundamental factors will start to take over: matters such as transaction fees, forks, user adoption, and the general demand for cryptocurrencies.
My colleagues at InvestorPlace have a friendly bet: which will reach 40, first: bitcoin or the Dow Jones? And either could be right. But for , how to invest in bitcoin remains clear. On the date of publication, Tom Yeung did not have either directly or indirectly any positions in the securities mentioned in this article.
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