In the last weeks, Bitcoin along with top cryptocurrencies are looking good. In fact, many are said to be waiting for this time since Bitcoin reached its all-time high of near $20K. Since Bitcoin reached its all-time high, regulatory changes, as well as questions of adoption, have been raised by many. And since then, Bitcoin dropped by more than 80%.
But this time around, it seems that Bitcoin is having a comeback. It has already surpassed $5,000. And by the looks of it, it seems that there are some institutional investors at play to the movement of Bitcoin and other cryptocurrencies?
Institutional Investors at Play?
Now that people are talking about cryptocurrencies again, could it be possible that there are already some institutional investors at play? This time around, eToro analyst Mati Greenspan pointed out that there is already a significant impact played by Wall Street in the recent movement of Bitcoin. He mentioned that “Even though Wall Street’s contracts are only paper, and not settled in Bitcoin, they are still a significant part of this market now”.
CME Group announced that “CME Bitcoin Futures had a record trading day on April 4, hitting an all-time high volume of over 22.5K contracts (112.7 equivalent Bitcoin), surpassing previous record of over 18.3K (64.3K equivalent Bitcoin) on February 19”.
To give you an idea about the size of CME Bitcoin futures, it came close to matching the combined volume of the top ten crypto exchanges that was able to garner around $685 million.
$8.4K in The Coming Weeks?
One of the questions is that is it going to continue to skyrocket especially in the coming weeks? Tom Lee mentioned again recently that Bitcoin is undervalued. One prominent cryptoanalyst, Crypto Thies, mentioned on Twitter that Bitcoin could actually go to $8,400 in the coming weeks.
He mentioned that he is actually confident that Bitcoin is going to return to $4,700. However, he expects Bitcoin to go up higher in the coming weeks.
Bitcoin is Not a Joke
To give you a perspective, Bitcoin was able to come up by 25% last week alone. Ray Neuner commented on Twitter that “I can’t respect any publication that is still calling Bitcoin a bubble. Even if it was a bubble last year, I’ve never seen a bubble pop twice”.
For Fundstrat’s Tom Lee, he does believe that the bull market is back. But of course, it is left to be seen in the coming months if it is really another bull run. Keep in mind that Bitcoin was able to surpass all-time highs in the last ten years.
But of course, there are a lot of things that should still be answered. Though it seemed that the market is now excited about the possibility of Bitcoin coming back, it is imperative to take a closer look at the regulatory changes that happened since 2017. Infrastructures have been built, but until today, there is no general consensus on how to treat cryptocurrencies. In fact, the US Securities and Exchange Commission are still hesitant to approve a Bitcoin ETF for the reason that there is a possibility of market manipulation.