Tips Why is Bitcoin “mooning” again in 2020?

Bitcasino.io_Karl

One of the world's leading Bitcoin-powered casinos
Joined
Feb 28, 2020
Location
Germany
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Hey there!

It’s me Karl from the
crypto casino again. :) Just wanted to keep you up-to-date with Bitcoin news.
As some of you may know, Bitcoin price is mooning again.

What does it mean?
Mooning is a term used by crypto enthusiasts to refer to the continuous growth in the price of cryptocurrencies.
It derives from the phrase ‘going to the moon’ that occurs when a cryptocurrency’s price skyrockets so high, it goes off the charts.


What causes Bitcoin mooning? How does it happen?

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To know the reason behind this phenomenon, we have to learn what causes
Bitcoin's price to rise in the first place.
Typically, the main reason behind an upward trend is due to many people buying and storing Bitcoin. Unlike traditional markets, the movement of the crypto market highly depends on the volume of coins out there.

If a significant volume of Bitcoin is bought, the price appreciates. If a large volume of coins is sold, the price depreciates. So if there’s a consistent buying of huge volumes of Bitcoin happening in the market, it’s inevitable that the chart will climb higher every day. The more mainstream Bitcoin becomes, the more people will buy and participate in the market. That is always considered a positive phenomenon for cryptocurrencies.

However, Bitcoin’s dependability on buyers also has a negative effect. This means that if more people are selling Bitcoin rather than buying them, then the price will drop as well. The crypto market’s volatility is often judged as the weakest point of the industry, which is why people are always on the lookout for other coins that are about to moon.


When has Bitcoin ‘mooned’ before?

The first Bitcoin mooning in 2017

Bitcoin mooned for the first time in December 2017 when it climbed to nearly US$20,000 - the highest it has ever been. This was also the highest price a crypto coin has ever reached. In the following year, Bitcoin’s price slowly climbed down. By December, it dropped as low as US$4,000, which made 2018 known as the year of the cryptocurrency crash.

Following this crash, however, was Bitcoin’s second mooning in 2019. When the year started, Bitcoin wasn’t looking good as it dipped to its lowest US$3,000. But in just a few months, the community was abuzz with a bullish sentiment after the coin’s price continuously climbed.

The second Bitcoin mooning in 2019

By the third quarter of 2019, Bitcoin’s price showed positive signs of a bullish run. From US$3,000 in February, it steadily rose to US$12,000 in July. The reason behind this upward trend proved to be institutional investors dipping their hands in the crypto market.

Institutional investors consist of wealthy family offices that compose of high net worth individuals. Their sizable investments jumpstarted Bitcoin’s second mooning that prevented Bitcoin’s downward trend in the first months of the year to continue.

In the third quarter of 2019, Bitcoin rose above the US$11,000 mark. Another factor that contributed to Bitcoin’s second mooning is Facebook’s announcement of their own digital coin, Libra. This prompted mainstream interest in Bitcoin and other cryptocurrencies. With Facebook’s wide reach to billions of users, more people learned about the crypto market which led to more investors buying their first Bitcoin.

Positive investor sentiment also played an important part in influencing a lot of people into buying Bitcoin. It drives public interest and creates a strong momentum that contributes to the appreciation of Bitcoin’s price.


Why Bitcoin is mooning again in 2020?

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Bitcoin is mimicking its performance last year, but this time, it’s even better. By the end of the year’s first quarter, Bitcoin dipped alongside traditional markets due to the coronavirus situation. In March 2020, it went as low as US$4,000, which was then dubbed as the ‘Black Thursday’ event.

Fortunately, this has been Bitcoin’s lowest price since the year started. After the Black Thursday event, Bitcoin’s price started rising again. This was largely attributed to the price appreciation that often happens before bitcoin halving. Bitcoin’s block reward was scheduled to be halved in May 2020.
Bitcoin halving is an auspicious event meant to reduce inflation and cause a positive long-term effect on Bitcoin’s price. Due to the halving craze, more people were buying Bitcoin, which in turn, positively affected the coin’s price.

Bitcoin continued rising even after the halving happened in May. By the third quarter, its price breached the US$10,000 mark and even went as high as US$12,000 in August 2020. For the entire month, it remained in the US$11,000 territory and at times, went past US$12,000.

In the first week of September, Bitcoin’s price dipped back to US$10,000, but US-based cryptocurrency exchange Kraken reports that September has historically been a bad month for Bitcoin. During this month, the average return dips to the negative side. Fortunately, Kraken says this isn’t the end of Bitcoin’s bullish run. Instead, the temporary dip will only fuel an aggressive return in the last months of the year.


2020 Bitcoin mooning is only beginning

Bitcoin’s bullish run can be attributed to people looking for alternative investments other than fiat currencies. In these uncertain times where governments are putting nations on lockdown, economies are in recession and unemployment rates are at an all-time high, people are looking for investments that will keep them secure in the future. With how things are looking right now, perhaps this could be the start of Bitcoin’s third mooning.

What do you think the Bitcoin price will be by the end of the year?

Cheers,
Karl

Bitcasino.io

Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors. Before deciding to trade cryptocurrency you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
 
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Slottery

Senior Member
PABnoaccred
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Aug 21, 2017
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Malta
Love guessing so let's guess over $20k. More and more projects around cryptos bringing them much easier (and even tempting) option to have part of your funds (if can tolerate volatility, but we are in gamblin forum :) ). You can get quite high interests for holding your cryptos (up to 8%, of course somebody can promise you 120% but if staying in some even half decent places who been around for some years) and even higher for stables (up to 12%), these are quite different rates what you get from any saving accounts. This has been naturally made big investors more and more interested to chip some of their dosh to assets where you can expect price going up (hard to see many big cryptos totally defaulting anymore, some companies like Cred little time ago of course, there are quite big risks in hedging every profit you can from these markets) and get high interest paid daily installments and you can get your assets away any moment you want to do something with them.

Utilization of cryptos get much better all the time, good steps have already been companies who offer debit cards and you can easily get fiat from atm or pay anything you would with your debit card. Also i believe that AML and other regulations are good things in cryptos as well, if you want to get serious big funds invested there and that's happening all the time. Ther still will be millions of these defi and other projects where is possible to play without any regulations (BTC in beginning wasn't really much more than millions of alt tokens available now but was first big everyone know and benefiting about right now) but these swaps/exchanges for tokens with no real utilization are not something what big majority would start to play with but now when you exhange your assets between fiat/cryptos/stables etc.. in realtime with your phone app, more and more start to own these and more and more ways to use them will be introduced.

Libra by my guess have more hype than value, usually in investments, when you see it in social media, you are late (maybe not too late but bigger money was there to be made), there's not really anything big what would change crypto world, sure it's good for crypto world to spread word and get more people to even know cryptos and how easy it is already to own them on account you can withdraw/deposits/exchange how ever you want and have even IBAN number for fiat transactions.

We'll see what happen but at least don't think crypto will disappear from world anymore, it's there to stay and one quite tempting investment in this negative interest time if your heart can handle some 10-40% daily ups and downs in value, these been temporary and if you saw BTC last ATH at 2017 and drop after that and have kept investing it last few years, your average price (if for example bought them monthly) is quite good now and looks good for future.
 
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