2017 was the year cryptocurrencies made it mainstream. In fact, more people became interested regarding Bitcoin and other digital currencies up to the point where Bitcoin price almost reached $20,000. But as regulators made the necessary changes in the crypto market, Bitcoin’s price dropped over the last few months. In fact, a lot of people were worried that they’ve lost their money already.
However, for those who preferred to HODL than to sell their cryptocurrencies, Bitcoin is said to be in another “price explosion”. Could it be possible that we are going to see the value of Bitcoin soar yet again?
Bitcoin was able to return above $9,000. This is worth mentioning considering that this is the first time since March that Bitcoin was able to go beyond the $9,000 mark. If you will ask Rodrigo Marques, the CEO of investment platform Atlas Quantum, “I’m not surprised to see bitcoin’s price exceed $9,000 this week”. In addition to this, he mentioned that “rumors of a price explosion seem to have driven by more and more institutional buyers getting into cryptocurrencies”.
Recent Market Activity
According to Cryptoslate, the buy orders dominated market activity. In fact, 92% of the entire market activity was buy orders. This was the first time it happened since March of last year. According to the site, “with so many buy orders placing pressure on the cryptocurrency market, a significant price shift is highly likely”. They even mentioned that price surge is “inevitable”.
At this point, if you will look at the recent low of Bitcoin at $6,443.20 on April 1, it is up by 46% at $9,407.81.
If you will ask Joe DiPasquale, the CEO of cryptocurrency fund of hedge funds Bitbull Capital, “Some big players have recently entered the space and many of the circumstantial barriers that were feeding the bears appear to have lifted”. He also mentioned that “All indications show this should be the start of a nice steady climb”.
The Same Trend with Altcoins
The same is true for the altcoins. If you will look at the top 25 cryptocurrencies by market capitalization, 24 of which were up in the last 24 hours.
And why exactly is this happening? Fran Strajnar, the CEO of Brave New Coin, sees a number of factors for the recent price hike. You have the Rockefellers and the Soros that are moving into the cryptocurrency ecosystem that somewhat legitimizes cryptocurrencies. For instance, George Soros’ wealth management firm is planning to trade digital currencies. Then, you also have the likes of Goldman Sachs that is planning to enter the picture.
It is true that traditional industry players are now looking to invest in cryptocurrencies. And for this reason, digital currencies are now gaining a solid reputation that blockchain technology is here to stay. According to a report, there are around 56 finance firms that are already looking to
enter the crypto market by the third quarter of the year.
This could mean a large amount of funds entering the crypto market that can then initiate a bullish run for Bitcoin and even for other cryptocurrencies in the near future.