Bitcoin, the largest cryptocurrency in the world, has been in an uptrend since the start of 2019, and this time the rally in price is not only based on FOMO (Fear of Missing Out), strong fundamentals are backing this rally.
Bitcoin started this year at the price level of $3700, but the rally started in April 2019, the price reached the highest level of the year at $13,400 in June. Since then, the price is in a correction mode. Currently, the price is hovering around $10,000 but the key difference between previous rallies and this rally is that this rally is based on fundamentals.
Let’s take a look at the reasons for strong fundamentals
Record Breaking Hash Rate
Recently, Bitcoin Network hash rate reached an all-time high of 82.5 TH/s. Hash Rate is a term used in the crypto world to measure the number of calculations a network can perform per second. Higher Hash Rate shows that the network is more efficient and secure. Many analysts believe that price will eventually follow the growth in Bitcoin Network Hash Rate due to increased efficiency of overall network.
Institutional Money in Bitcoin
CEO of Coinbase, Brian Armstrong announced on 16 August that they are getting $200-400 million in new crypto deposits every week, a large part of that amount is coming in Bitcoin. He further mentioned that Coinbase has more than $7 billion of crypto assets under custody. On 16 August, Bakkt (A digital asset custody company) also announced that they got approval to launch Bitcoin Futures and Warehouse.
Adoption of Bitcoin is increasing by the time, and this year has been the most productive as far as adoption is concerned. In July 2019, Richmond Hill (A city in Canada) announced that all residents of the city will be able to pay Government Taxes in Bitcoin. The largest cryptocurrency in the world is also booming in the real estate sector, Grove Resorts in Orlando, Florida recently announced that they will now accept Bitcoin as a payment method for their 878 residences. An Australian Engineer living in Darwin sold his house earlier this year for AU$600,000 in Bitcoin.