Most of us have noticed a big jump of Bitcoin this month and now we will understand the reasons for the rate growth and the resulting consequences.
Firstly, we need to understand the reasons. One of the main reason for the growth was the emergence of a platform for institutional investors from the Fidelity site (US company). 22% of Fidelity investors already have Bitcoins.
Also, one of the factors influencing the Bitcoin rate was the predictions of several well-known cryptanalysts. They assumed the growth of Bitcoin in May 2019 and people picked up this wave, as the course was slowly but surely going up. A key role in this was played by crypto experts Peter Brandt and Mitoshi Kachu.
The important point was to overcome the threshold of 200 EMA. This is an indicator that helps traders to act based on past rate changes. Bitcoin had already crossed the threshold of 200 EMA four years ago, which provided him with a long lead among other cryptocurrencies.
Despite the emergence of many new and promising cryptocurrencies, Bitcoin occupies top ranking positions and continues to rise slowly and confidently. This is also indicated by his hash rate, which rose to 377% this month.
The major players of the crypto world also very strongly influenced the course this month, provoking a 130% increase. On the night of May 17, several sale operations of 5000BTC were carried out, which led to a decline in the rate by 8%.
Is mining still alive?
Over the last week, miners have earned 8 times more on Bitcoin commissions than on the rest of cryptocurrencies. We all remember that Bitcoin mining has become unprofitable for a long time, but with the latest news in the crypto industry, you can reconsider your views on mining. Perhaps, soon, the GPUs will rise again in price and the mining farms will once again work at full capacity, transforming the blockchain network transactions into franklin’s banknotes in the miner's pocket.