Bitcoin soared above the $11,400 mark on Tuesday to establish a fresh 15-month high.
The BTC/USD exchange rate settled an intraday peak of $11,483 as of 1110 GMT today. The move pushed the pair’s month-to-date gains to more than 35 percent, according to data provided by CoinStats’ cryptocurrency portfolio management app.
Investors appear to be wiping off the memory of bitcoin’s depressive action throughout 2018. That year saw the cryptocurrency shedding more than 75 percent of its value from its historic top of $20,000. Nevertheless, a bottom formation in December 2018 woke a wave of fresh upside swings. By the first quarter of 2019, bitcoin had posted a decent 10 percent appreciation.
Nevertheless, it was the second fiscal quarter that brought a string of wild bullish moves to the bitcoin market. Since April 2, the bitcoin price pursued a steady upside action – a parabolic move, which stretched its market capitalization from $73.85 billion to now more than $200 billion.
What Pushed Bitcoin Higher?
The period coincided with significant events in the global market. First, the decision of US President Donald Trump to slap tariffs on $300 billion worth of Chinese goods stirred average mainstream. The situation allegedly prompted those investors to find refuge in bitcoin as hedge.
Second, social media giant Facebook introduced Libra, a stablecoin that is heavily inspired by bitcoin. Many analysts commented that Facebook’s decision validated the power of decentralized assets to people that were otherwise suspicious of it. As a result, many of them started buying bitcoin in large.
Third and last, Federal Reserve declared last week that it would definitely cut rates in July. The US central bank also presented the possibility of further rate cuts in 2019. Their decision weakened the US dollar, leading to every other rival currency/asset rising against it, including bitcoin and gold.
The future of BTC is looking brighter than ever, now when mainstream firms like Fidelity Investments and TD Ameritrade are planning to offer regulated bitcoin trading products to investors in both the retail and institutional space.