Bitcoin has been rallying strong in the past few weeks and its recent price is more than double what it was at the start of the year. Crypto enthusiasts have as expected, been going crazy about all this, but most of them have struggled to single out the exact cause of this tremendous growth.
An alternative data provider known as indexica has been at it though. Indexica built a custom index based on natural language processing of thousands of textual documents to try and make sense of Bitcoin’s recent meteoric rise; a run that began in April and went on through the month, before pausing and going back north again.
What indexica came up with represented the dawn of a new age in crypto. Indexica uncovered three main drivers to this exciting Bitcoin rally.
- A more complex and mature conversation surrounding Bitcoin
- Fewer concerns about fraud
- More futuristic discourse about Bitcoin as opposed to the past
These three drivers according to indexica explain the current animation of Bitcoin prices. Indexica talks of a more mature conversation about Bitcoin in the sense that, more academics and financial professionals are discussing Bitcoin and cryptos in general. This makes them attractive to institutions who are curious and what to know how they can help improve operations.
Unlike the past, where fan boys and get rich quick hustlers, and emotional investors dominated the crypto discourse, the assets are being discussed in high ranking conferences, by some of the most respected industry professionals.
Indexica also highlighted the futurity of crypto conversations over the last month. The discussions have changed from what happened in the past, to what could happen in the future. This speculative nature of crypto discussions has drawn a lot of interest towards them.
Zak albert, the chief executive officer at indexica says the futurity of Bitcoin now resembles that often seen among traditional stocks. This indicates positive price moves in the future. “Think about it, executives will speak of good things they expect to happen on conference calls before they happen,” he said.
Lesser concerns about fraud also drove the current price gains, this despite incidents like the Binance heist that occurred earlier this month. This is likely due to the advent of more secure wallets and a growing preference for cold storage among crypto holders.
There is no telling for sure what will happen in terms of price, but what’s for sure though is that crypto seems to be well past its irrational exuberance stage. Crypto has matured and the story is well captured by the current price action.
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