Investor: Bitcoin could be benefiting from the economic crises around the world

Bitcoin has been on a 174-day bull rally since the low of Dec. 15, 2018, when it was trading at $3,150, which has seen its price surge 188 percent reaching $9,070 on May 30.

In a recent Medium post, Tuur Demeester, the founding partner of Adamant Capital, explained what he believed were the main factors currently driving the price of bitcoin and a forecast of where it could be heading next.

Demeester suggested that accumulation, short squeezes, and bitcoin withdrawals from questionable exchanges were some of the drivers behind the bitcoin price.

"On May 5th, the Chinese yuan started weakening against the US dollar, and 13 days later traded 2.5 percent lower - a huge move in forex terms. Remarkably, that was also the week that bitcoin broke above the resistance of $6,500."

The Russian international television network, RT, in a segment called Boom Bust also suggested that the cryptocurrency market has benefited from the trade war between the two economic giants leading Chinese investors to move out of the yuan into bitcoin in anticipation of a possible devaluation.

Peter Brandt, a 40-years trading veteran, believes that bitcoin has indeed entered a "FOMO phase" that could lead to a major correction.

According to the analyst, once bitcoin regains the $10,000 threshold, it will likely jump 200 to 400 percent because Wall Street will enter the market.

"If bitcoin somehow manages to get to [$10,000], it's very likely going to make a run to $40,000 within five months. Every institution is going to realize, 'look at $10,000 it's likely to go back to its all-time high, which is double. There are very few things that can double.' So I think FOMO truly gets triggered once bitcoin hits $10,000."

In an interview with The Independent, Oliver Isaac, a blockchain investor, discussed the multiple factors behind the resurgence of bitcoin including geopolitical, technological and regulatory forces.

It remains to be seen if more investors will move into bitcoin as a safe haven against the financial turmoil facing some of the most powerful economies around the world.