Just when everyone counted Bitcoin out during the beginning of 2018, it seems that Bitcoin is making a comeback. It is now fast approaching $10,000 once again and it has been showing momentum. In Hong Kong and in South Korea, considering the slightly higher selling price of Bitcoin, the digital currency is already selling at $10,000.
A Psychological Support
Prior to November 2017, $10K was considered important since it can be a psychological support level for a lot of investors. Simply put, $10,000 is a milestone for Bitcoin. Once Bitcoin has reached $10,000, investors are going to look for something higher perhaps at $12,000 and maybe even progress to $14,000 as its support level.
From $6,500, Bitcoin has been able to push towards $9,800 in less than three weeks. The daily trading volume of Bitcoin also soared.
Can Bitcoin price push through? Similar to Litecoin, activity is pretty much active in OKEx. In addition to this, Binance and Bitfinex are also showing great numbers in terms of people trading Bitcoin. With the three platforms, it has generated over $230 million. It only shows that these three crypto exchanges all played a role in Bitcoin’s bullish run.
There are a number of things that may have resuscitated investors’ interest in Bitcoin. First, you have the fact that Goldman Sachs’ is now moving closer towards the crypto market. In addition to this, there are also other institutional investors that are looking forward to entering the crypto market. And the reason for this is mainly because of the regulatory clarity. It is safe to assume that the crypto market has survived the regulatory changes that happened right after 2017.
Can No Longer Be Ignored
If you will ask Brian Kelly, the founder and CEO of BKCM LLC, which is an investment firm that has focused on cryptocurrencies, he mentioned that “it’s a serious market”. He also added that “when I go to events like this in years past, you would kind of dismiss bitcoin”. These days though, it seems that it is the complete opposite. According to Kelly, “It’s been brought up several times at this conference and taken quite seriously. And I think you have to with a market cap at half a trillion dollars”.
In Kelly’s opinion, Goldman Sachs is the main player that may have caused Bitcoin price to rise. He said that “they are definitely the leaders among the institutions in the space”.
Kelly also said that based on its nature, Bitcoin can be considered as a currency and not really as a security. In fact, SEC chairman Jay Clayton also mentioned that “It’s a complicated area. Because, as you said, there are different types of cryptoassets. Let me try and divide them into two areas. A pure medium of exchange, the one that’s often cited, is Bitcoin. As a replacement for currency, that has been determined by most people to not be a security.” And this is a big deal because it only means that Bitcoin doesn’t need an approval from the SEC.
Considering price fluctuation and the interest of institutional investors, could it be possible that Bitcoin remains bullish even after a few weeks? Will Bitcoin ever get to its all-time high last December soon? In fact, some even think that Bitcoin could reach $700K.
There are already predictions by a number of investors saying that if Bitcoin is able to land the $10K mark, it is then possible that it will gradually build momentum towards $12,000.