Crypto bears were scared away at the start of April 2019 as Bitcoin and Ethereum lead the charge with sky rocketing prices. With over $100 million in volume added overnight, investors are wondering why Bitcoin and Etherum sky rocketed early April 2019.
The rise in price was drastic and officially took the crypto market out a long bear season. However, traders and investors are confused as a whole why Ethereum and Bitcoin rose to 6 month highs overnight. This article will help to explain what factors lead to the overnight bull run of Ethereum and Bitcoin.
(At the time of this article, 1 Ethereum to USD currently trades at $179)
Is Bitcoin Halving Propelling The Crypto Bulls?
BTC is planned to undergo a mining reward halving in May 2020 and historical data show this process tends to put a bid under the cryptocurrency at least a year or two in advance. (The Bitcoin protocol reduces new issuance after a certain number of blocks are processed, an event that occurred most recently in 2016). In simple terms, this means that Bitcoins value should double due to the supply of Bitcoins being reduced in half. Miners will no longer be rewarded what they currently are being paid to mine the blocks. Ethereum is closely tied to Bitcoin, so this is one reason that the price hike may have come so rapidly.
The charts predicted a bull run
This is another theory as to why we are seeing a sudden boom in cryptocurrency. Of course this doesn’t actually give us any clue as to why the charts reported the rise in the first place, but it is possible that the positive momentum triggered some large whales to buy back into the market. Many mainstream crypto analysts and traders are claiming the bear season has ended and we have a clear path for the bulls to run free in 2019 smashing important price barriers.
The main sentiment you should take away from charting is it can often be right, but can often be wrong. You can validate this by viewing some charters predictions about the crypto market before the April bull run; their sentiments seemed to have shifted with the price in many cases.
What is next for Ethereum?
The answer to this question could be the correlation that is causing Ethereum to outpace Bitcoin in gains at the start of April. Ethereum is due for their major network upgrade and the test net of ETH 2.0 is now live and on schedule. Being on schedule is important for the Ethereum team as they caught major scrutiny due to the delay of their Constantinople network upgrade. However, the delay was for good reason and it is now fully released and running flawlessly.
The ETH 2.0 upgrade is one that people have been anticipating for a very long time and our suspicion is a strong correlation between the test net going live and the recent Ethereum bull run.
Should I buy Bitcoin or Ethereum in 2019?
This question will have a different answer depending on what you’re looking to get from the crypto market. Our stance has always been in support of the long term goal of cryptocurrency and Ethereum in particular. The projects are here to stay but the price could fluctuate wildly. If you’re looking to invest in crypto to make a quick profit, you may have already missed the boat as prices could be over inflated at this point. It’s very possible we see a correction in the market and a retracement to lower levels. On the flip side, we may see this bull run continue into the $300 territory with Ethereum and $6000 with Bitcoin.
This is why sticking to your beliefs when it comes to crypto is important so you don’t over extend your hand or buy too late. Pick an amount of fiat you are comfortable investing and do not over extend that limit under any circumstance.