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Cryptos are seeing signs of life – will it go Bull?

Cryptos are seeing signs of life – will it go Bull?
Asked by
Nigel Frith categorie-icon time-icon4 months ago

I am seeing many of the mainstream crypto volumes of trades increasing over the last 3 months and prices are bouncing in the bull direction – will it last? could BTC be close to $10k by year end again?

1 Answer Answer Question

steve rose
Answered time-icon4 months ago

The crypto market has gone through 3 very similar cycles so far, with the catalyst in each case being the halving of the bitcoin mining reward (all cryptos are closely correlated with bitcoin). The reward halving means less supply coming on to the market, the reduced supply leads to rising prices which inevitably leads to more traders buying in as they anticipate continuation of the upwards trend. In every cycle so far this pattern has led to a parabolic move upwards which eventually runs out of steam, and is inevitably followed by a brutal retrace. There's no guarantee the same cycle will play out again but the underlying dynamics haven't changed so it seems highly probable. The next halving is due around May 2020. It's therefore more likely that the current price rise will run out of steam and prices will range until closer to the next halving.

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