Bitcoin started 2020 off in a great way, as the price of Bitcoin rallied with 37%, producing a significant monthly candle. On a fundamental note, BItcoin seems to be reacting to global economic threats. Examples are the recent tension between Iran and the United States, but also the coronavirus in China.
Cryptocurrency trading and investing are becoming increasingly popular. As more people are drawn to the young market, more financial products become available to both speculate on price movements as well as limit risk. These products derive their value from an underlying asset, the spot market, and are known as derivatives.
While using decentralized networks to power financial products has advantages, it also brings challenges. Key challenges that have to be overcome are possible conflicting laws in different jurisdictions, rights and obligations of the participants, and the clarity and enforceability of the legal basis for any payment and its settlement finality.
Roughly every ten minutes, a block is produced by a miner through Proof of Work and added to the Bitcoin Blockchain. As a reward, the miner gets a certain amount of Bitcoin for every block it produced. This reward is about to be cut in half in 2020. Exactly what type of effect this will have on the Bitcoin price is an actively debated topic within the cryptocurrency community.
On the 23rd of October 2019, Facebook's CEO, Mark Zuckerberg, came before the Committee of Financial Services. The talking points of the 6-hour long hearing before the congressmen and congresswomen of the committee were the "Examination of Facebook and its impacts on the Financial Services and Housing sectors."
While the price surged from $7,300 to $10,500 on the 25th of October 2019, the macro view starts to show similarities with the previous bull market. This article will focus on the similarities and possible perspectives of Bitcoin movements in the coming period.