Bitcoin (BTC) has fallen under $9,600 for the third time since July. The virtual currency has been traded close to $10,000, a price that worked as support during the last few weeks. Due to the recent price drop, many cryptocurrency enthusiasts and investors became worried about the future of the space. However, cryptocurrency miners and some analysts consider that Bitcoin could continue growing during the next weeks and months.
Bitcoin Is In A Bull Trend
Bitcoin hash rate is close to all-time high levels. According to Blockchain.com, Bitcoin’s hash rate reached an all-time high of 83 million TH/s per second on August 29. This is the highest value ever registered by the Bitcoin network, meaning that it has never been as secure as now.
This impressive value represents an increase of around 160% compared to the hash rate registered back in December 2018. This shows that there is a growing interest in Bitcoin and cryptocurrencies in the market.
According to BKCM founder Brian Kelly, miners acquired enough capital to be able to fund the next 12 months of operations.
On the matter, he commented:
“I’ve talked to a lot of miners around the world, a lot of them have said they have sold enough bitcoin to get us through the next year or so and we are going to hoard bitcoin at this point in time and we are not going to sell it and the supply of bitcoin will get cut in half. Just real simple economics: lots of demand hitting little supply, price goes higher.”
Basically, miners consider that Bitcoin’s future price could continue growing. This is similar to what many other analysts currently suggest. According to Nunya Bizniz, a cryptocurrency analyst on Twitter, the 15-month volume-weighted moving average is signalling that Bitcoin is expected to reach a new all-time high in the coming months.
Every single time that Bitcoin’s price crossed this indicator to the upward a new all-time high was reached in a period between several months and some years. This time, Bitcoin has crossed that indicator a few months ago, which shows Bitcoin could be getting closer to new highs.
BTC: Monthly
15 month Volume Weighted Moving Average.
Signals are always late but never wrong. pic.twitter.com/spED5D1WuC
— Nunya Bizniz (@Pladizow) August 26, 2019
In May 2020, Bitcoin is expected to experience a new halving event that would reduce Bitcoin’s new issuance to 6.25 BTC from 12.5 BTC per block. With a growing interest in the most popular cryptocurrency, the price of Bitcoin could also start growing before and after the halving event.
If you want to know what can happen with Bitcoin, you can read our article about Bitcoin price prediction.
At the time of writing this article, Bitcoin is being traded around $9,616 and it has a market cap of $172 billion, according to CoinMarketCap.
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