Bitcoin is currently hot as it increased by 5{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} being able to hit a high of $7,785. That is good news as the cryptocurrency continues to go up since the last few days. The biggest cryptocurrency today was able to go beyond $7,500 considering that it was struggling last month even trading below $6,000. It was able to break the $7,000 level last Tuesday after the news broke out that BlackRock will step up with a working group that is going to explore crypto tech.
What Makes Institutional Investors Interested?
There are industry experts today that are quite bullish to the future of cryptocurrencies especially Bitcoin. Bitcoin has been considered by the US Securities and Exchange Commission not as a security which is good news for its investors. It ultimately means that the rules on stocks aren’t going to be applied on Bitcoin as well as Ethereum.
Grayscale, a company that manages around $2 billion in assets, mentioned the possibility of seeing more institutional investors interested in the crypto market soon. As for eToro’s Matthew Newton, he believes that there is an anticipation regarding the approval of Bitcoin ETF which is rumored to be decided by the US SEC around August.
Newton mentioned that “In the long-run all of these points are very bullish”. He also added that “Technically, on the charts, what happened last week was very positive, but getting through these levels will be critical in the short term action”.
Resistance Near $8k
But of course, it is important to note that there is a “formidable area of resistance” according to Newton. This is found somewhere near $8,000. And for this reason, until the area is broken, it is tough to “make too much of this as being a move that would start to lead us meaningful higher”.
Though it is still quite far from the near $20,000 high last December, things are looking bright again for the cryptocurrency. Bitcoin has undergone scrutiny and regulators attempted to make the necessary changes in order to protect investors. Japan and South Korea are among countries in the Asian region that has led towards this movement. Japan created new regulatory changes that would be applied to crypto exchanges. This was after the hacks happened. In addition to this, South Korea also decided to apply the G20 unified crypto rules.
A Bad Move to Ban Cryptos?
China has banned crypto-related activities. And though it is true that there some countries that had a knee-jerk reaction to the industry fearing money laundering, tax evasion, and even capital outflow, a report by the European Parliament argues otherwise. The report mentioned that it’s a bad move to actually ban cryptocurrencies at this point.
Are we going to see Bitcoin go beyond its all-time high in the next months to come? It is definitely a good thing for the industry today to see Bitcoin soar to where it is now. However, does it really have the momentum that experts are expecting? Tom Lee believes that regulatory clarity could bring about Bitcoin reaching beyond $20,000 and even reaching $22,000.
