Bitcoin’s Recent Rise Could Be Attributed to Rising Institutional Interest
Last year bitcoin, the most well-known and expensive of the cryptographic coins, touched $20,000. After that, however, it’s journey has taken a slight downturn. The fluctuating price of the pioneer cryptocurrency has been the talk of the market for months now, but over the period of these last seven days, the valuation of leading crypto has edged closer to the $10,000 mark. One big reason for this uptick comes from the introduction of more prominent investors and upgraded technology.
Speculating on Demographic of Speculators
Although there are multiple question marks behind the rise of bitcoin trading, the improvement of sheer fundamentals plays an integral role. The CEO of Brave New Coin Fran Strajnar, for instance, thinks improving the crypto’s lightning network and external influences are attracting the investors.
With Soros’ and the Rockefellers’ taking note of the digital currency ecosystem, it is safe to say that crypto is certainly on the rise. In addition to this, there’s also high chance of a bitcoin ETF being approved by the Securities and Exchanges Commission (SEC).
Responsible for macro investment in Soros’ New York-based Fund Management, Adam Fisher said that the multi-billion wealth management firm intends to set foot into trading digital assets very soon. The Rockefeller family isn’t far behind, either. The billionaires are looking to invest their wealth in startups that are issuing coins of their own. This move comes in the wake of the family’s partnership with CoinFund.
The likes of Goldman Sachs and Barclays are also testing the waters, with the former hiring Justin Schmidt as the head crypto trader and the latter announcing plans to create a crypto trading desk.
Rob Viglione from ZenCash, believes that investors are now re-entering the volatile market and the recent high indicates the same. Thanks to the plethora of information about the once unexplored domain, people are now aware of the significant gains that virtual currencies promise over the long haul.
Two Big Economies Losing the Bitcoin Race
Taking a backseat to all the financial upheaval are India and China. Bitcoin has been banned in India, owing to the judgment passed by the Reserve Bank of India (RBI), which has been on the receiving end of some flak by many Indian crypto startups.
Close on its heels is China. Although the country remains the center point for blockchain technology, it is unsure about ICOs and everything surrounding the new funding model. Due to this pariah status, investors are looking elsewhere to invest – mainly Hong Kong and Singapore.
Bitcoin Experiencing a Quick Pullback
At the time of writing, bitcoin and all alt-markets are seeing pullbacks – a healthy occurrence after a week of rising prices. BTC is reaching higher highs with each run after touching a support level of $9200. This detail indicates the return of favorable sentiments.
According to the author, once the psychological 10k barrier is broken, the market will see a lot of investors jumping in.
(Source: TradingView)
The price is closely following the mean as generated by Linear Regression, of which further indicates no reason to panic. All information and trading strategies using the handy Linear Regression can be found in BTCManager’s trading guide series.
