Reasons why Bitcoin price rose $600 in 24 hrs to $8300
Bitcoin is climbing towards the $10,000 mark, a target that’s looking more and more unstoppable. Bitcoin was last up 7.8% after rallying from $7700 on Tuesday to $8300 within 12 hours easily.
The digital currency rose 5% to around $7,700 Monday.
According to CNBC, Bitcoin bounced above $8,400, but it’s still worth almost $200 billion less than its record high in December 2017 at $19,783.21, quoting CoinDesk.
What’s making Bitcoin prices jump?
Bitcoin is making a bid to one day displace and replace fiat currency.
Blackrock, the world’s largest asset manager, recently said it had formed a working group to look into blockchain and crypto-enabled investments.
Bitcoin went up roughly 205 in the past week and broke above the $7,000 level for the first time in a month last Tuesday following the news.
The US Securities and Exchange Commission, Wall Street’s top regulator, which in January seemed to shut the door on approving the creation of exchange-traded funds (ETFs) look to have reversed that decision with approval coming as soon as August or September 2018.
Cryptocurrency ETFs would go a long way toward making the assets more accessible to everyday investors because they’d theoretically let you invest in the whole ecosystem at a reasonable price point, similar to how investors can now buy shares and fractional shares in all 500 stocks in the S&P 500.
“Giving investors access to diversification would be an important breakthrough on the path to mainstream acceptance because most people don’t have tons of extra money to throw around on “investments” that might end up worthless in the long run,” according to Inverse.com, an American digital media company.
New York-based VanEck, which recently concluded that Bitcoin will rival gold, partnered with blockchain platform SolidX to create a Bitcoin-based exchange-traded fund (ETF).
CEO of BKCM Fund and CNBC’s very own cryptoanalyst, Brian Kelly said growth might be contributed by the possibility of a bitcoin ETF.
No more bad news
Speaking to Express.co.uk, Jordan Hiscott, Chief Trader at the UK-based Ayondo Markets suggested that the negative news around cryptocurrencies had already peaked and would likely die down.
He also added that there was room for Bitcoin’s price to reach $9,200 in the very near term.
Matthew Newton, an analyst at global investment platform eToro, has pointed to a break in past price patterns and even mentioned the $10,000 mark for Bitcoin as something that is within reach.
Kelly says institutions have realized that the crypto market is here to stay and have decided it’s time to understand the complete package, and looking to fit this asset class fit into their portfolio.
The fact is that institutional investors make up 56% of the overall revenue of the currency.
Kelly added that Blockchain technology is the highlight of the crypto market, as it has been dubbed as the next layer of the Internet, “Web 3.0”.
“Consumers are switching their mindsets from ‘database to databank’ and this will mark blockchain technology on a whole new level, eventually enhancing the chances of user adoption,” said Kelly.
“The once yearn for selling bitcoin as quickly as possible has died off, with more consumers reconsidering its like and actually investing in it,” Kelly concludes.
Graph by HowMuch.net
As HowMuch puts it, “the cryptocurrency market is certainly one of the fastest-growing and most exciting assets in the world… But for all the hype, the entire crypto market is worth only a tiny fraction of the gold market, which is itself only worth about 10% of the entire world’s stock markets,” reported Market Watch.
Meanwhile, the massive global real-estate market is valued at $217 trillion, which is still less than the largest single type of market: debt. The global debt market is valued at $247 trillion.
Business review.eu revealed the ranking of the most popular cryptocurrencies, led by Bitcoin as of July 25, quoting coinmarketcap.com.
Bitcoin’s market capitalization stood at USD 142.5 billion at a price of USD 8,300 per BTC.
Second is Ethereum with a market cap of USD 48 billion. The price per ETH stood at USD 476.11.
Ripple comes third with a market cap of USD 18. billion. The price per XRP is USD 0.45.
Next there is Bitcoin Cash with a market cap of USD 14.7 billion. The price per BCH was USD 855.21.
In the case of EOS, the market cap amounted to USD 7.8 billion. The price per one EOSwas USD 8.71. The market cap of Stellar stood at USD 5.54 billion. The price for one XLM was USD 0.29.
Litecoin is next with a market cap of USD 5 billion. The price for one LTC was USD 0.29.
Cardano had a market cap of USD 4.42 billion and a price per ADA of USD 0.17.
IOTA had a market cap of USD 2.72 billion. The price per one MIOTA stood at USD 0.98.
Teather is next with a market cap of USD 2.48 billion and a price of USD 0.99 for one coin.