What Caused Bitcoin to go Parabolic and Hit $8,000 This Week? Factors and Trends

-


The FOMO has finally returned to crypto markets as scenes reminiscent of late 2017 start to unfold this week. Bitcoin has been the clear leader with dominance almost touching 60 percent and a surge over $8,000 for the first time since July last year.

Bitcoin is King At 60%

The BTC maximalists are full of hopium again today as their daddy blasted past another resistance zone and hit a new high of $8,050 a couple of hours ago. Asian trading has seen a slight pullback but the bulls are still grabbing the markets by the horns and keeping BTC buoyed up.

Trading at just below $8k, Bitcoin is up 14 percent on the day in its second thousand dollar surge this week. At the weekend BTC pumped from $6,300 to $7,500 and many expected a correction which has yet to materialize. Over the past 24 hours BTC has pumped from just over $7,000 to top $8k for the first time in ten months.

Market dominance is a touch under 60 percent which is the highest it has been since mid-December when BTC surged to its all-time high of just under $20k. The move has been that big that mainstream media is back on the FOMO train with headlines such as ‘Bitcoin’s Surge to Almost $8,000 Rekindles Memories of Bubble’.

Fundstrat co-founder Tom Lee told Bloomberg “Bitcoin is acting differently since moving above its 200-day moving average.” He is not wrong; BTC has gone parabolic, almost doubling in price since early April where it traded at $4,100.


All About The Institutions


The increased interest from institutions such as Fidelity, E*Trade, and Bakkt has no doubt added to momentum. According to a medium post, Bakkt will start preparations for user acceptance testing (UAT) for futures and custody, which they expect to start in July. There will be two contracts available; a daily settlement BTC future, enabling same-day market transactions, and a monthly BTC futures contract which will enable trading in the front month and across the forward pricing curve.

Institutions are clearly keen to cover their bases with Ikigai Asset Management CIO Travis Kling adding;
“This is a hedge against irresponsibility from governments and central bankers … the world is waking up to the value of a hedge against quantitative easing.”
Speaking to Bloomberg Kling added “The largest crypto gathering in the world is going on right now, Consensys, and there’s Bakkt announced their futures product is going to be up and running in July,”
According to the DVAN Buying Selling Pressure Gauge, Bitcoin is seeing the highest buying pressure since the late 2017 surge which propelled it to giddy heights of $20k.

In addition to institutions major corporations such as Microsoft, Amazon, eBay, Facebook and Whole Foods are getting into crypto payments and blockchain platforms. The ice has finally melted and crypto winter seems like a distant memory now though the altcoins are still not fully free of the bears just yet.

Published in:  https://www.newsbtc.com/2019/05/14/what-has-caused-bitcoin-to-go-parabolic-in-second-thousand-dollar-day-this-week/

Comentarios

Publicar un comentario

Entradas populares de este blog

A Race for Blockchain: IBM, Microsoft, Lenovo explore DLT

-
Imagen
Blockchain, cryptocurrency, and other innovative techs have significant disruptive potential. Within the course of time, this fact becomes obvious not only for community enthusiasts but also for traditional industry players. That is probably the major reason for world electronic bulls to explore the innovative possibilities to boost their own progress. Microsoft showed interest in blockchain technology back in 2018. They announced their plans to apply the technology behind Bitcoin (the leading crypto by market cap) in its decentralised IDs (DIDs) App. The company was support DLT-based DIDs through Microsoft Authenticator App. However, as of now, the project seems to be frozen.    Unstoppable IBM    IBM, another technological giant, has has shown interest in exploring blockchain and cryptocurrency techs even earlier, in 2015. As of now, the company is known to take part in several related projects.   In January 2019, Ford Motor comp...
Leer más

Cryptocurrency Universe Expands Far Beyond Bitcoin

-
Imagen
The code base is increasing and improving every day as computer science graduates from top schools jump on board. By Aaron Brown A sort of “cryptobrawl” broke out last month at the Milken Institute Global Conference between economist Nouriel Roubini and panel participants more optimistic about the future of cryptocurrency technologies. I had the opportunity to participate in a partial rematch at Battle of the Quants, where Roubini was just as negative and DMS Governance's John D’Agostino presented a moderate defense. All of the heat concerns the border of crypto and traditional finance, but much of the important stuff is happening far from the border. For example, one of Roubini's claims is that advances in financial technology by existing financial institutions and startups are delivering on many of the promises of crypto-enthusiasts, and these will continue to transform financial markets. That’s true. However, many of those advances were spurred by the threat of ...
Leer más

Small-business owners more optimistic at the start of 2020, the NFIB says

-
Imagen
The numbers: Small businesses turned more optimistic about sales and profits in the first month of 2020, but they are still struggling to find qualified workers, according to a closely followed survey. The National Federation of Independent Business said its index of small-business optimism rebounded from a small dip in at the end of last year, rising to 104.3 points in January from 102.7 in December. Business owners were more confident that sales would continue to rise and help support higher profits, the NFIB said. What happened: The net percent of owners who expect higher inflation-adjusted sales in the months ahead rose by 7 points to 23%. By and large, business owners were nonplussed by the impeachment trial of President Donald Trump. A gauge that measures uncertainty was basically unchanged. The biggest worry of small businesses continues to be a shortage of skilled employees available for hire. A quarter of owners say it’s their No. 1 problem — more than taxes or re...
Leer más