The last year was tough for Bitcoin and the rest of the cryptocurrencies. Bitcoin was able to reach near $20K in mid-December of 2017 only to enter a bear market losing 80% of its value. Now, it seems that Bitcoin along with other cryptocurrencies is having a comeback. Bitcoin on Wednesday was able to balloon over $5,000. Along with Bitcoin’s growth are the other altcoins.
Cryptos on the Rise
Ethereum, today was able to hit a 20.82% spike in just 24 hours while Ripple’s XRP was able to spike by 14.64%. Now, the question is if the bear market is finally over? There are a number of factors that may have contributed to this recent jump. One, partly it can be due to the fact that JP Morgan has been exploring blockchain technology with their JP Morgan coin weeks ago. And also, more recently, you have the report that a private buyer purchased $100 million worth of BTC.
According to Hunter Horsley who is working as the CEO of Bitwise, “That order would be enough to have an impact”. He also added that “Crypto is famous for a long history of volatility like this. It’s always hard to pin down the true impetus, and often the real source is not obvious”.
There are also those who believe that Bitcoin has crossed the important technical level of $4,200. It may have triggered a stop-loss trade.
Everyone is Talking…Again
Since Bitcoin lost a significant amount of value after reaching its near $20K peak, many have dismissed the crypto market being a bubble. Now, it seems that Bitcoin is getting the attention it used to have. New York-based economist and trader Alex Kruger mentioned that “everybody outside of crypto is talking about Bitcoin today”. He added that “from banks to funds to family offices to brokers”.
Could it be possible that a media blitz can contribute to another bullish run? It was the same scenario as last time that brought Bitcoin to near $20,000. But what makes it different now is that it seems that the market is somewhat maturing.
A More Matured Market?
The US Securities and Exchange Commission has been looking closely at the possibility of companies using blockchain technology to scam other people. In fact, the SEC targeted celebrities that endorsed tokens. Floyd Mayweather and DJ Khaled were fined by the agency for promoting unregistered securities.
And also, you have the US SEC still looking to regulate the market. Unfortunately, the lack of regulatory clarity has been stopping adoption. Until today, efforts to have a Bitcoin ETF failed due to the lack of surveillance tools by crypto exchanges. According to the SEC, the market is prone to market manipulation because of this.
So what is next for Bitcoin? Brian Kelly believes that the next target for Bitcoin is going to be at $6K level. Now, there are still a number of questions that have to be answered. For instance, has Bitcoin finally reached its bottom and it is now on its way up? Does it mean that all the other cryptocurrencies are also going to experience the same bullish ways as 2017?
