Cryptocurrency

4 reasons that explain the rise of bitcoin, according to eToro

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The market of bitcoin (BTC) and the cryptocurrencies in general is in a turmoil, with a significant growth in the last seven days. According to a report from the brokerage firm eToro, there are four reasons that explain this behavior and what could be its next level.

The firm highlighted in the press release as the first element in the growth of the volumes traded on the exchange houses in the last few weeks. For Javier Molina, the spokesman of eToro in Spain, transactions exceeding $ 100,000 have increased, indicating a greater participation of corporate investors.

“This is important because a part of these players understand they are institutional or professional, what it means to (a) greater adoption and consistency in the movement,” stressed the spokesman. According to eToro, BTC exhibits a yield of 53% in 2020, while the ether (ETH) shows a rise of 146%.

As a second element to consider would be the increase of the volumes on the derivatives markets of bitcoin, according to the company Skew. Here the open interest on BTC would be capturing more attention among investors in markets such as Bakkt, close to the Stock exchange of New York, or the Chicago Mercantile Exchange (CME).

The third aspect that would be turning on the engines of the market of cryptocurrencies is the finances decentralized (DeFi). During the past few months we have implemented new protocols such as yield farming that are attracting the attention of new participants. On this point Breaking News reported on July 22 that Compound and MakerDAO were driving to the DeFi beyond the us $ 3,000 million as the values locked.

The fourth item would be the stablecoins. For eToro, the use of the so-called “stable currencies” is waking up not only to companies in fintech to look for new solutions, but to players classics such as VISA or Paypal. Corporations would be bringing the magnifying glass to this type of alternatives to lead them to their systems of payments.

Rise and fall of bitcoin in 2020

A point which he emphasized eToro on the market behavior of cryptocurrencies is that to continue the bullish trend, the price of bitcoin could reach to oscillate in the range of 12,000 to 13,000 dollars. For Molina, the question now posed to investors is how long you could keep the uptrend of the last week?

In the past seven days the price of bitcoin has maintained a rising trend. Source: CoinGecko.

Although it does not offer a specific response, the spokesman of the eToro believe that while they do not lose the support of up to $ 10,000 in bitcoin, the market could continue to rise. On the 27th of July Breaking News reported that the price of bitcoin had reached 11,000 dollars for the first time since last year, a milestone that was achieved more than two months after the occurrence of the halving.

It is important to mention that the price of the first criptomoneda has shown, so far this year, strong changes in its price. The 12 of march went down in history as the “black Thursday” in the ecosystem of the cryptocurrencies. That day, BTC lost more than 40% of its price to be at least us $ 4,700 per unit.

Now, the market looks at growth with bitcoin up 19.7% for the past seven days and ether a growth of 31.6% in the same period. Other projects with increases significant in the last week are those of XRP (22.6 per cent), bitcoin cash (26,9%), Cardano (18%), bitcoin VS (20,8%) and Litecoin (27.9 percent).

The price of bitcoin during the afternoon of this Wednesday is moved around 11.200 dollars, while that of ether, the criptomoneda native of Ethereum, it was about USD $ 322, according to the index of Breaking News.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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