Nouvive posted on Reddit: What are the key drivers of Bitcoin’s Value. This led to an interesting, yet fierce debate of what in fact drives Bitcoin’s Value.
The following are key drivers:
- CME/CBOE Settlement Dates
- Mining Pools
- Cost Price of Mining
- Weather fluctuations in countries of Miners
- Artificial Manipulation – like Bitmain
- They control the max amount of Mining for Bitcoin Cash
- FUD against Bitcoin
- Institutional Trading Desks
- China is a big player – despite them not stating
- They control most Mining
- Therefore they control most mining pools
- There has to be institutional support
- Block-Size Issues?
- Transaction cost and Speed –
- Pushes people to Altcoins
- Political changes
- We saw that with Iran, Turkey and later Russia with Sanctions
- Wealth Funds or Family offices purchasing as holdings
- Dump based on FUD posed by Institutions
- Zero Hedge makes comment on USD Price implications to Bitcoin
- The stronger the USD, the weaker Bitcoin is
- Block reward rate vs cash inflow determines a huge % of current price
- Each block has a reward for the miner. That is the flow rate of new bitcoins being created and entering the marketplace. It is safe to assume that miners are immediately selling to cover short term costs.
- I believe that the current reward is 12.5 per block. This means that every 9-10 minutes there is another 12.5 bitcoin for sale, and if the new cash flowing in for purchases cannot accommodate ~1800 BTC being created per day then price drops.
- Every 4ish years the reward rate gets cut in half, called a halving. The next halving is likely to occur around April of 2020, where the reward will become 6.25. This means that less money needs to flow in to maintain current price, or if the same money flows in it will increase price provided byu/Umsco226.
This has been provided without comment, until a later article.
How did the Crypto Market perform?
The Main altcoins that were up included, TRX, EOS and NEO.
TRX, will continue to skyrocket past Digital expectations as a result of their Mainnet that will be released on the 31stof August 2018. Their CEO, Justin Sun has stated that their will be a somewhat Marketing war.
Market sentiment from this has been awarded a AAB Rating.
NANO, a coin that has done 400% over the past 10 Days has increased their marketing awareness, building up their communities.
This has caused their market sentiment to go from a BBC to a ABB.
EOS,the coin has seen highs of $6.20 from a low of $4, over the past 2 weeks. This comes from a high market sentiment.
Where is BTC Going?
Bitcoin’s Market sentiment is Neutral, this is owed to the vast amount of Cryptocurrency Traders seeing the inability of where Bitcoin is going.
Currently, Bitcoin on the higher time frames, is on a Bull Pattern. This comes as surprising for many considering the slope of what Bitcoin has increased by 4%.
The Bullish Argument is that Bitcoin retraces to $7050, before shooting up to $7200 over the next day.
The bearish argument is that Bitcoin is going to trace all the way to either $6900 or $6679.
There are volume gaps in all three directions.
Nouvive has taken a Positive sentiment towards Bitcoin, seeing it breach both $7200 and $7300, before closing the day at $7250.
Nouvive: Home of Crypto Beginners, Traders & Investors. Nouvive provides Cryptocurrency trading news, Analysis and indicators for beginners, traders and investors.
Information on these pages contain speculative statements that involves risks and uncertainties. Crypto-Assets profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell. Nouvive does not in any way guarantee that this information is free from mistakes, errors or material misstatements. It does also not guarantee that this information is of a timely nature. Crypto-Assets involve risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing or trading are your responsibility alone. For more information, please view the Risk Warning Below.