Bitcoin in recent days has been recovering. There are experts speculating that Bitcoin’s resistance yesterday was actually near $8,000. Today, Bitcoin was able to cross the $8,000 mark for the first time since May. And because of this, there are those that are already anticipating a comeback from the cryptocurrency.
The likes of Tom Lee had predicted that Bitcoin will be able to hit $22,000 this year. It would’ve looked impossible last month as Bitcoin was only trading below $6,000. The latest boost even established Bitcoin’s dominance in the entire crypto market. Its lion share has increased to 47{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} which is the highest level since last December.
What’s Pushing Bitcoin Up?
There are a number of things that have contributed to the bullish market. One, there’s the anticipation to the approval of a bitcoin exchange-traded fund (ETF). Right now, the US Securities and Exchange Commission is still trying to make a decision regarding the matter. It was filed through the Chicago Board of Exchange (CBOE) by VanEck and blockchain platform SolidX.
So what exactly can happen in case Bitcoin ETF has been approved? This would mean that people could actually be buying Bitcoin without going to exchanges. In recent months, we’ve seen a lot of things that could be improved with exchanges. From hacking incidences to privacy issues, these are things that could potentially be solved by ETF. And also, there’s an unconfirmed report that Bitcoin ETF is likely going to get approved.
Aside from Bitcoin ETF, you also have BlackRock, which is the world’s largest asset manager. BlackRock has been reported to show interest in Bitcoin since there is the possibility that there are institutional investors that are looking to participate in the market soon.
Also, there’s David Solomon who was just appointed as the new chief executive for Goldman Sachs last week. He mentioned in June that New York-based investment bank is hoping to add bitcoin and crypto services into its portfolio.
Goldman Sachs is already reported to be providing publicly-traded derivatives that are tied to Bitcoin. He said that the institution should “evolve its business and adapt to the environment”.
Not a Risk
If you will ask the Financial Stability Board, they released a report last week saying that Bitcoin along with other cryptocurrencies do not currently pose a material risk to the global financial system. What this means is that regulators are encouraged to simply regulate the industry and not ban crypto-related activities.
You also have G20 looking to finalize an anti-money laundering regulation that will be looking into the crypto space. This was after Japan mentioned the threats of money laundering and even terrorist financing using cryptocurrencies.
Does it Mean Bullish for Altcoins?
So does it mean that altcoins are also bullish at this point? In reality, this isn’t exactly the case. Ethereum is down by 1{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} in the last 24 hours and Ripple also dropped by 2.6{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff}.
Is this a sign that Bitcoin is actually going to head back to its bullish ways? Now that there is regulatory clarity, it isn’t surprising why more companies are interested in Bitcoin.
