Why Bitcoin Still Hovers Around $10,000
Bitcoin Prices and Bitcoin Price Predictions
Bitcoin prices have been a matter of concern to everyone in the crypto space.
Three months ago we all thought that Bitcoin prices will actually rise and we would experience a major Bull rally.
That hasn’t been the case lately.
Bitcoin prices have hovered around $10,000 for the greater part of thirty days.
This has led many pundits to make bearish bitcoin price predictions.
Those predictions haven’t come to pass either.
A whole lot of factors are responsible for this ranging of prices.
Reduced Banking-Crypto Cooperation
Big banks have actually reduced their relationships with major crypto exchanges.
This has affected the confidence that people have had in the Crypto space.
It has also slowed down the cryptocurrency adoption rate.
The end to the Coinbase-Barclays banking relationship is proof of this.
It has caused a slight dip in the current Bull market and it is showing in the $10,000 Bitcoin price.
Across the board, while many people are interested in coming into the crypto space, the lack of an effective form of seamless transactions have made man
The US Government’s Anti-Crypto Stance
The American President doesn’t like crypto.
So do many within his administration and within Congress as well.
The recent congressional panel on Facebook’s Libra shows these sentiments.
That has made new entrants into the crypto space to hesitate on bringing in new cash flows.
They are holding their positions and exiting the market in small market moves.
This is always evident when bitcoin prices drop.
And the US Securities and Exchange Commission (SEC) isn’t helping matters either.
So far, the US SEC has been one of the regulatory agencies that haven’t been enthusiastic on crypto prices in the West.
The US-China Trade War
Currently, China has been hit hard by tariffs by the US government.
This has created a lot of chaos in international markets.
Bitcoin has been seen to be a hedge against the uncertain moves by either Country in the trade war.
For now, though, the Americans seem to be winning the war.
The Chinese often use bitcoin investments to defray the increased costs that come with doing business with the Americans.
Whenever the Chinese gain, there is always an uptick in bitcoin prices.
The swaying of prices around $10,000 indicates that neither side is winning the war at the moment.
Cryptocurrency Exchange Security Issues
It is an open secret that Cryptocurrency Exchanges have always had security issues to attend to.
The recent Binance security breach is indicative of that.
This has made everyone to be unsure of holding Bitcoins for the long-term.
As such, HODLing Bitcoins has become an issue for many.
And it is reflecting on Bitcoin’s prices.
The $10,000 Bitcoin price barrier is a sign of this.
Bitcoin prices in July had broken the $12,500 barrier which was indicative of the setting in of a Bull run.
The security issues of the crypto exchanges have been a major factor in driving prices down to $10,000.
Higher Transaction Confirmation Costs by Miners
We all know how miners are central to the growth and maintenance of the Bitcoin blockchain.
The recent Bitcoin resurgence has created a scenario where higher transaction confirmation costs have ensued.
These costs which aren’t reflective of the cost of mining and confirmation have made Bitcoin prices to remain unstable.
The miners who don’t operate in consensus have variances in their transaction confirmation fees.
As long as transaction confirmation costs don’t remain steady, many institutional investors won’t dip their toes in the cryptocurrency markets.
As such, Bitcoin prices won’t go in a specific direction.
This is another cause for the $10,000 bitcoin price scenario.
The European Union, the British and Brexit
The lack of no concrete arrangements between the British and the European Union over the British leaving has stalled many major cryptocurrency moves in Europe.
Adding to the fact that London is the World’s largest financial center, the British have been pro-crypto from the word go.
This has also stalled many opportunities which would have cemented the thawing of cryptocurrency prices.
Until Brexit is resolved, there may be no major cryptocurrency moves in either Europe or Britain.
And Bitcoin prices will most likely remain at current levels barring some major entry into the crypto markets.
The Whales have been Away
The 2017 Bitcoin Bull rally was majorly influenced in part by the “whales” who pumped tremendous amounts of money to gain from huge price increases.
This year, however, most of those guys haven’t been in the markets.
The major drivers of growth for Bitcoin have been the institutional investors who are currently keeping Bitcoin prices stable.
These institutional investors don’t operate in a speculator fashion.
Their long term approach ensures that their entry and exit doesn’t produce the kind of volatility that was experienced in 2017.
This, of course, is seen in the recent pullbacks that Bitcoin prices have made from below $10,000.
Largely, Bitcoin prices will remain around this price until something fundamentally major drives them in a confirmed direction.
This shows that the Bitcoin markets are coming into their own.
What do you think?
Will Bitcoin prices continue to remain at $10,000?
Please let us know in the comments below!