BTC extending stunning rally amid support from central banks
Global central banks have revised their stance on crypto currencies from strong aversion to the green light. In fact, regulators are blowing a new crypto bubble. With such solid support, bitcoin is conquering historic highs, having appreciated almost 500%. This stellar rally is the catalyst for the bullish trend of other altcoins. The number one cryptocurrency has skyrocketed to $19,000, the level last seen three and half years ago. Crypto fans reckon that bitcoin will go to the moon in the near future. According to CoinMarketCap, the web resource computing average bitcoin quotes by tracking 20 largest crypto exchanges, bitcoin spiked to $19,400 per token in mid-November. In other words, the crypto market is going through the same boom as it was in 2017. The most popular cryptocurrency was flirting with even higher levels from December 16 until 19, 2017, only for three days in its history. Back in late 2017, bitcoin set the all-time record when it surged to $19,967 per token on the back of the mining hype.
Since then, bitcoin came under scrutiny of monetary authorities worldwide. Watchdogs cracked down on crypto investment firms and exchanges. So, the crypto market went into a sleeping mode. This year, central banks turned on their printing presses at full capacity. Monetary policies of global regulators suppose massive accommodation with a view to making money less expensive to borrow under low interest rates. Easy monetary policy creates conditions for cryptocurrencies and other riskier assets to flourish. Central banks flooded markets with enormous liquidity, thus inflating market quotes of financial instruments in the range of commodities to emerging market currencies and their stock indices.
Meanwhile, no one dares to say how long markets will keep bullish momentum. One thing is certain that central banks will hardly revise their monetary policies in the short term. However, experts remind those longing for a bonanza that the equally stunning rally of 2017 ended up with an abrupt collapse.