Why Did Bitcoin Surge Above 9,000 USD? | Crypto Markets


Hi, guys, I’m Molly Jane. As you all definitely know bitcoin broke $9,000
this weekend for the first time in over a year. We spoke with Mati Greenspan per usual about
what’s going on at the markets and what caused bitcoin’s leap over that price point. So, Mati, my first question for you of the
week is the fact that bitcoin rose over 9.4% this Friday, reaching its highest point in
more than an entire year. So can you point any fundamentals that you’re
seeing behind this price surge? Yeah, definitely, I mean the technicals, they
look beautiful obviously, but if you’re asking about the fundamentals they certainly are
very strong at the moment. One of the things that was pointed out,
first of all, the hash rate on bitcoin is now at an all-time high, so that means there’s more
computer processing being generated in the Bitcoin network than ever before, that tells
us that the bitcoin miners themselves, who are providing the foundation for the network,
are extremely bullish right now and adding to their computing processing power. There was also a report that the daily active
addresses on bitcoin reached a million to a million addresses per day, that’s the highest
level since November 2017. This chart is from Coin Metrics, who I like
to use a lot, but apparently there’s different sites have different variables for what they
consider an active address. So sites like BitInfoCharts and Blockchain.info
are not reporting nearly the same amount of active addresses, but you can see across all
of them that activity on the blockchain is growing at a rapid pace especially since January. I’m very glad to hear that obviously. So my next question now is, you know, over
the weekend bitcoin was basically toying with the $9,000 point – it was up, it was down,
right now it’s currently up a bit, by the time this goes on
YouTube it could be down again. So what do you think the current support and
resistance we should be looking at right now? Yeah, bitcoin is volatile we know, and incredibly
unpredictable especially on the short term. As we mentioned in a previous update, I think
that there is a miniature resistance at $10,000, the only major resistance that we have on
the chart is $20,000 which is the all-time high. What we saw at $9,000 I think that was kind
of incidental that we had kind of resistance at that level, we might get some, because
bitcoin tends to follow very basic technical analysis, so every round
number tends to be significant. So $8,000 was significant, $9,000, $10,000
is a super round number, so traders will likely place more significance on that now. So that would be the next minor resistance
is at $10,000, but I think the next major resistance is the all-time high. That’s when, you know, if we cross that, that’s
when we get real parabolic movements and FOMO and stuff like that, but, at the moment, I
think that’s what we’re looking at. We can see that ever since we crossed that
200-day moving average things have been different for this market. So what do you think could be a bullish price
point for this week? Look, if we just manage to maintain above
$9,000 – I think that is quite bullish. If we do see a retracement, I would expect
to test that $8,000 level. But the question is if we can surpass $10,000. I think that is going to be a bit harder to
pass $10,000 than it did $9,000, but the question is how it breaks. If it breaks up above $10,000 and just keeps
going – that’s super bullish, that’s when we see a lot of FOMO entering the market,
but we’ll see how it goes. Personally, I would prefer to see this type
of smooth inclines like we’re seeing right now, the fact that we didn’t pass $9,000 and
go straight to the moon I think is a very positive progression. Volatility is key, but better for the network
if the volatility is a bit less and that’s exactly what we’re seeing right now. So picture-perfect scenario there. So now moving away a bit from the fundamentals
and moving into some politics. Some analyst has noticed an inverse correlation
between the Chinese yuan and bitcoin in the context of the still ongoing
trade war between the US and China. And so they’ve kind of pointed out China’s
controls to limit funds fleeing the country, and then their weakening currency is boosting
factors for bitcoin. So would you agree overall with this analysis? So, yes, I think that it’s interesting to
note the correlation between the depreciating renminbi and the appreciating bitcoin. I saw the Grayscale analysis you’re talking
about and they put up some charts that were quite impressive, you could see big Xs on
the charts, you know, the Chinese yuan going down and bitcoin going up. Correlation does not
necessarily equal causation though. So we need to take it with a grain of salt,
unless you can identify who is buying and where they’re buying from. That’s going to be incredibly difficult, because
in 2017 all of the exchanges in China closed down. So we won’t necessarily know exactly where
that’s coming from. One thing that I thought was a bit more interesting
was that in Hong Kong at the moment, where we’re seeing some very interesting political
progressions, if you’ve been watching what’s happening there, 2 million people were protesting
on the streets over the weekend which is about 25% of the population. So we can see some
very clear political tensions there. And in Hong Kong the price of bitcoin was
trading at around $160 more than it’s trading in other places, in Coindesk for example,
so I put out on Twitter a screenshot here is TideBit, which is a Hong Kong exchange. This is the BTC/Hong Kong rate which was,
at the time of the screenshot, around $9,337 and on Coindesk it was trading at $9,178. This is only a premium of about one and three
quarters percent, obviously it’s nothing like the kimchi premium and sushi premium that
we saw in 2017 sometimes, you know the price in Hong Kong, in South Korea and Japan was 20%, 25%,
30% more than the price in the rest of the world. However, the market
has come a long way since 2017. And as we’ve seen in the Bitwise report, these
days the market is much more in tune with itself. So prices across different exchanges
are very close together. So to see a consistent premium are rising
in a place with political tension is showing that okay, maybe we don’t use bitcoin as a
safe haven, as far as you know portfolio management is concerned, but this is where we can see
very clearly that in times of stress, where people feel not so confident in their local
economy, they do tend to turn to bitcoin at this point. I guess kind of going along this theme in
terms of countries and their citizens using bitcoin. There was big news this Friday when it came
out that Binance had updated or at least was not going to be enforcing this new Terms of
Service that would mean that U.S. residents cannot purchase, I mean they can’t trade on
the Binance platform as at this upcoming September. So this made altcoins go down, this made bitcoin
dominance increase as, I guess, a result of this news potentially. So do you see this announcement as something
bullish for bitcoin or bad for the market? What do you think about Binance’s decision
to exclude U.S. residents? Actually the real announcement here was that
Binance is in partnership with BAM in order to create a Binance.US. So, a specific offering for U.S. residents. Now, as a part of that, the U.S. residents are,
unfortunately, going to lose access to Binance.com. The difference here is that Binance.US, the
US division is going to be much more tightly regulated, we’re talking about something that’s
much cleaner from a regulatory perspective. However, much less coins. Binance.com has about 150 altcoins, so the U.S.
customers are going to completely lose access to that. Is that good or bad for the industry as a
whole is difficult to say. United States, it makes up a huge portion
of overall traffic on Binance as we’ve seen. So, as you mentioned, Bitcoin’s dominance
can rise in relation to that, because of the altcoins people are going to have to sell
off some of their altcoins, because they simply can’t trade them anymore. And then they’re going to go into the more
mainstream crypto. So what this does, say is that there’s a consolidation
within the industry. Let’s just both hope that
bitcoin stays around that $9,000 mark. Have an awesome week ahead. So that was me, Molly Jane, talking with Mati Greenspan
about everything that’s going on with the markets. And remember, this month Cointelegraph’s YouTube
channel is gonna be putting out three documentaries. One is already out, starring me,
“Crypto in the USA”. Then there’s gonna be “Malta – Blockchain
Island, part II”, as well as “Sex and Crypto”. And, if you guys like my t-shirt, then you
should remember to like, subscribe and hodl your loved ones,
and check us out on our merch store. This episode is sponsored by Trade Santa. Trade Santa is a cloud-based trading bot. Set it up in less than 2 minutes, trade multiple
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16 thoughts on “Why Did Bitcoin Surge Above 9,000 USD? | Crypto Markets”

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  5. great vid ! between hashrate maxed out, halvening coming up , massive institutional acceptance and Bakkt starting soon, Get your SPACESUITS ready – Bitcoin is going to the MOON 🙂

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