Prices across the crypto space are moving into positive territory. Bitcoin is up five percent over the past twenty four hours and many alt coins are breaking weekly highs. Several factors are at play which are pushing up these values.
FEAR OF FIAT INFLATION IS PUSHING PEOPLE INTO CRYPTO
Last week, politicians across the globe went to great lengths to promise massive bailouts and stimulus programs designed to help alleviate the pain of increasing unemployment, and economic recession. The public felt relief, yet economists quickly pounced. Experts asserted that these moves were all but certain to cause massive inflation and much more financial pain down the road.
For days now the criticism of these bailouts has built. Most notably, analysts have made clear that the decision by the U.S. Federal Reserve to print USD $2 Trillion will significantly devalue the Dollar.
Devalue of the dollar coming? https://t.co/kB9GVgmjug
— Winston Wolfe (@MrWWolfe) April 1, 2020
Not surprisingly, a greater number of investors are moving their assets into cryptocurrencies, which have a fixed supply and cannot be manipulated by a central bank. This activity reinforces the notion that the public increasingly trusts Bitcoin and alt coins to hold their value during times of economic stress.
PEOPLE ARE LOOKING FOR CRYPTO DEALS
In mid-March crypto investors liquidated millions of dollars worth of their holdings in a scramble to acquire quick cash. Most feared the work stoppages related to the growing economic meltdown.
It has now become obvious that this sell-off created deals aplenty across the blockchain space. With Bitcoin below $7k for the first time in months, the temptation to buy is very strong. The same can be said of many altcoins, some of which have not been this low in over a year.
PLATFORM FUNDAMENTALS REMAIN STRONG
Regarding Bitcoin, there has never been much doubt that 2020 would be a strong year. Before the onset of the COVID-19 crisis, the crypto market recovery was in full swing. Importantly, the block reward halving promised to drive prices much higher. These factors have not changed, and optimism is growing that the flagship cryptocurrency may end the year on a very strong note.
In fact, many cryptocurrencies, Bitcoin included, are experiencing very solid network strength. For example, the growth of decentralised finance (DeFi) is pushing Ethereum activity to new levels. Even lesser alts such as Chainlink, VeChain, and Stellar are experiencing notable increases in real world application. It thus stands to reason that investors will take notice.
The overall crypto market will no doubt remain volatile in the days ahead. Nevertheless, today’s market demonstrates that on a core level it remains healthy
Why do you think the crypto market has turned bullish today? Add your thoughts below!
Images via Shutterstock, Twitter @MrWWolfe