Bitcoin Rising – Why the Cryptocurrency is going up?
The world’s No.1 cryptocurrency Bitcoins rose to its highest level in about 17 months on Wednesday. So far in June it extended and still extending its rally to nearly 60%.
Cryptocurrency is a digital asset and rising of such assets will surely benefit lots of its owners.
According to Coinmarketcap the Bitcoin was trading around $12,800.
At the day’s peak, bitcoin futures BTCM19+21.84% hit an intraday high on CME Group Inc. CME-3.12% at $13,680, and isn’t far from that level now at $13,330 in afternoon action, according to FactSet data.
For Bitcoin, the eight-day streak is one the strongest in terms of aggregate performance and also one of the longest on record. Only five-time in the history this asset has strung together and increases on a daily basis.
Due to these gains, the market value of the coin which was created back in 2009 has reached $237 billion. As tracked by the data site, Wednesday’s rally means that Bitcoin’s value now represents 62.6% of all digital currencies.
It is next to impossible to say exactly what has reignited interest in the Cryptocurrency which had fallen as low as $3,200 in December but it’s almost certainly related to Facebook’s June 18 announcement that it plans to launch its own crypto token which is the Libra with a group of partners.
Just as plausibly, in the expectation of the rise the speculators are expecting a flood of newcomers who will end of buy it Bitcoins. Talking about the Facebook crypto token and Bitcoin.
Two are different things. Libra will be pegged to a basket of currencies and overseen by a consortium whereas Bitcoin floats freely and is completely decentralized.
Along with the partners like Visa and eBay along with the endorsement of Crypto by one of the world’s largest tech companies, appears to have managed one’s tentative buyers into the market.
CEO of digital currency trading platform Genesis Global Trading, said: “volumes are 2x to 3x higher than where we wear 12 months ago.” All these words were in emailed comments.
As institutional investors including traditional companies have launched Crypto-related ventures, some market participants point to increased investment volume in Bitcoin, reflecting more appetite for the cryptographic Asset.
The chief investment officer of Crypto investment management firm Arca, Jeff Dorman, told MarketWatch that Bitcoins parabolic rise in June suggests the asset is now “overbought, and due for a fall, flashing red.”
Dorman also said, “we looked at a variety of indicators and they are all overbought.”
When a person or persons are known as Satoshi Nakamoto mined the first Bitcoin which was the first digitally engineered more than a decade ago, it has been widely viewed as an implicit endorsement of the blockchain technology and to a lesser extent Crypto assets.
However, this is strong rally has promoted some Crypto experts to call for caution by novice investors.
Bitcoin futures have gained to 270% year to date, and assests pegged to Bitcoin also have jumped.
A popular Crypto bull, Fundstrat’s Thomas Lee, said he believed the ripfire for Bitcoin was due to investor “FOMO”, or fear of missing out, said last week. Lee has made some prediction regarding the price which will eventually hit $40,000. Lee made a number of wrong forecasts for Bitcoin in 2018.
For Bitcoin owners who see world through a bitcoin Crypto winter, either way, the sun is shining on them today.