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Since its big fall in 2018, the world largest cryptocurrency has made a hard comeback, soaring to a new all-time high (even though it’s undergoing some correction right now). The sudden comeback spiked some theories among crypto analysts and enthusiasts as well. What could be the reason for the upsurge in Bitcoin’s price?
Recovering over 28% in April alone, it is been all smiles and cheers in the crypto space. However, we are yet to know the reason(s) for the sudden rise. As more and more theories are being put out there, an alternative data provider, Indexica, took the time to conduct a research on the fuel propelling the rocket.
Using a custom index based on natural language, the alternate data provider was able to process thousands of textual documents in a bid to explain the reason(s) for the 28% spike in Bitcoin’s price in April.
At the end of the research, Indexica was able to find three major propellers responsible for the upsurge:
• Fewer concerns about fraud
• Focus on the Future, instead of past
• Better quality of discourse on the subject
Fewer concerns about fraud was a big part of the pull – although not the biggest. With the crypto winter that started last year, activities in the crypto market were reduced drastically, especially in Bitcoin’s market; thus shifting attention away from the crypto coin. The lesser the people playing in the field, the lesser the chances of an incident. So, with little fraudulent activities in the space, it is only logical for some people to get more involved now.
Another major factor, which Indexica claims hold the greatest amount of pull, is a shift in the tense of dialogue. Since the price crash in 2018, discussions have been focused primarily on the past – what could have happened? Is it really an asset? It was a big bubble after all, etc. However, that is not the case anymore. Last month we saw a shift in the tense of dialogue. Instead of focusing on the past, attention was paid to the future of the virtual coin and its market. This rekindled the interest of many investors in the market once more.
Lastly, Indexica found that there is a higher quality of discourse on the topic; that is more academics and financial professionals are getting involved in the discussion, and thus shedding a better light and bring more clarity on the coin and its market. Like stocks, Bitcoin and other cryptocurrencies are now discussed as serious assets.
Like everyone else in the crypto space, we do hope this marathon continues. You can trust us to update you every stage on the way.
What do you think about the Bitcoin resurgence?