Cryptocurrency & Blockchain Business

5 factors pushing Bitcoin to $8,000

Bitcoin (BTC) is within less than $400 of the $8,000 range – and as the price has shown in the past, a few hundred dollars could be vaulted within an hour. There are some indications that for BTC, the price may continue to inch up, or even vault the level in a very short burst of trading.

Here are some indicators that BTC prices are potentially on the move again:

Bitcoin Price Dominance: Within hours this Monday, the market capitalization dominance of Bitcoin moved up from 42.5% to more than 45%. This may mean altcoins are not in fashion, while BTC prices are climbing at a faster pace.

While some altcoins are de-coupled from BTC prices, others are easily sold to increase BTC holdings. The rising price dominance of BTC is seen as a sign there is more interest concentrated on the leading coin.

Miners Follow the Money: Bitcoin mining is at an absolute record, above 46.8 million TH/s. This inflow of new mining power, with more efficient machines and hash rates reaching 22 TH/s per machine, shows that miners trust their profitability potential. When BTC prices were falling, there were concerns that mining would become unprofitable. But despite the bear market, mining has continued at a faster pace, achieving both short-term and long-term goals.

Trading Picks Up: Bitcoin is becoming more popular, with trading increasing to 33.24% of the total market in the past 24 hours. The most active pairs are against the Tether (USDT) token, showing an inflow of funds from the fixed-price token into the new asset, as bullish attitudes return. BTC daily volumes are now closer to $5 billion in 24 hours, enough to effect a price change and show a return of buying.

Japanese Investors Return: At the moment, speculation in Japanese Yen and USDT are the leading factors behind the market movements of BTC. Now, the share of Yen trading is around 54% based on data from Cryptocompare, while USDT pairs take up nearly 31% of trades. Direct dollar inflows are lower, so the current market rise in BTC prices may be mostly speculative.

Expectations of an ETF: For US-based investors, inflows from institutional money are still expected, especially if an ETF is approved on August 10. This longer-term expectation may keep up optimism in the coming days. For now, speculation about the BTC market price is based on some technical analysis, as well as the proximity of the $8,000 level. But additional irrational optimism may add to the price hype.

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