While it is still only half way through January, Bitcoin and the rest of the cryptocurrency markets have gotten off to a flying start. In fact, this is the biggest New Year rally for the cryptocurrency since 2012 and it is not even the best performer in the market by a long way.
Other coins, notably BitcoinSV and Dash, have rallied in recent days and have once again incited calls that an altcoin season could be looming. But, even as this altcoins boom, Bitcoin is happily making impressive gains, up 20 percent for the year.
However, the question to be asked is what could be driving this most recent rally, as there are a number of potential catalysts. BitcoinSV could well be the culprit with its own nearly 100 percent gains in a matter of days impressive, if not cloaked in their own mystery. More so, the Bitcoin halving is much more in sight on this side of the new year and that could be exciting investors. Then there is the CME futures Options trading and even a fear of recession looming to consider.
The Wright kind of rally
A lot of interesting developments have been taking place over at BitcoinSV, the arguably lesser fork of Bitcoin Cash that is headed up by self-proclaimed Satoshi Nakamoto Craig Wright. Wright is in a legal battle to hand over billions of dollars in Bitcoin to his former business partner’s estate, but revealed he did not have access.
However, this week the metaphorical keys to the safe were brought forward and suddenly BitcoinSV started to rally. Bitcoin’sSV rally saw it even overtake Bitcoin Cash for a moment as interest soared. Meanwhile, Dash also did its part and the markets were firing again with Bitcoin happy to catch hold and further boost the rally.
Halving and growing
Another factor to consider that is more directly tied to the Bitcoin market is the ever-encroaching halving date that many feel will be a catalyst to renewed price action. It is also believed that the price spike for Bitcoin could come in the head up to the halving which may be happening now.
But, it could also be that CME, and institutional derivatives trading giant, has opened the doors on Bitcoin futures Options contracts due to demand, and these have taken off.
Finally, and perhaps a little abstract, the fact that the global economy is under huge pressure which has led to the central banks printing money and enacting emergency monetary policies may be driving Bitcoin’s price up as a hedge against this.
This is the opinion of analyst Mati Greenspan who tweeted: “Are we all feeling the effects of central bank loose money policy yet?!” on top of a green graph of the top cryptocurrencies.