The price rally of Bitcoin has made everyone in the community quite bullish, and ever since BTC breached $8,000 analysts have been looking for the catalyst that might have pegged the pioneer crypto coin to move from $6,000 to $8,000 in a matter of less than a week.
However, many crypto observers believe that the Lightning network played a pivotal role in taking the prices of Bitcoin so high, in such a short period of time. CNBC in its weekly blockchain coverage invited a series of crypto personalities to the program and analyze the current bullish trends, and probably narrow down upon the catalyst that pegged the market to roar in recent times.
Bob Iaccino, the chief market strategist at Path Trading Partners also joined on the CNBC coverage to put his views on the current market trends. CNBC reporter Seema Mody said that she has got two confirmed sources that say that the traders who bought in 2016 and sold in 2018 have returned to space in 2019. She also asked Bob whether he has come across any trader who has returned to the crypto space in 2019, to which he replied,
“Well, it’s entirely possible. I don’t have any more direct insight, me being more of a futures and equities guy, as to who’s actually doing the buying. I do believe I know part of the reason why, and that has to do with the inception and application of software called the Lightning Network.”
The Lightning Network Was the Biggest Catalyst in Bitcoin’s Price Performance
The lightning network theory suggests that the second-layer off-chain solution for the Bitcoin network was probably the biggest catalyst in soaring prices of Bitcoin recently. Bob Iaccino said that the LN network is actually making a small transaction quite easier for those who hold Bitcoin.
“Where you look at Visa, who can transact 65,000 transactions per second, bitcoin’s [prior level] was about seven, and now with the implementation of the Lightning Network you can actually get these smaller transactions off the blockchain network, making adoptability of bitcoin as a currency a lot easier.”
However, the claims of many who believe that LN is behind the current rally does not have any hardbound proof to back their claims. But, whatever may be the reason, the decentralized space is all pumped up and bullish about the prices after almost a year.