Bitcoin [BTC] – the start of another bull run?
Are bulls ready to bet on Bitcoin [BTC] again? It seems so, with the cryptocurrency crossing the $8,000 mark for the first time since May, posting an intraday high at $8,359.4. In the last one month alone, the world’s top cryptocurrency has seen its prices rise more than 40 percent, according to CryptoCompare. Interestingly, Bitcoin gained close to 21 percent in the last week.
So what’s driving this sudden positive sentiment?
Many believe it could be the speculation surrounding U.S. Securities and Exchange Commission’s (SEC) upcoming decision about listing a Bitcoin ETF. The decision, expected as soon as next month, would be a landmark win for the cryptocurrency community.
However, not everyone thinks the SEC will approve the same.
“Yes, I’ve been seeing this chatter as well, and I believe it’s largely unfounded,” said Kyle Samani, managing partner at crypto hedge fund Multicoin Capital, told Bloomberg. “If you read the ETF rejection from earlier this year, the SEC listed quite a few reasons why they rejected it. Most of those issues have not materially changed.”
Last year, the SEC had rejected an application to list Winklevoss Bitcoin Trust ETF and had asked companies to retract a number of applications for cryptocurrency-linked products early this year.
Bitcoin [BTC] – only way is up?
But investors don’t seem to share the opinion, as seen in the recent bullish run in the cryptocurrency market. Almost all the major coins rose on Tuesday, tracking Bitcoin’s gains.
Bitcoin is still far away from crossing its all-time peak of nearly $20,000, which it had reached late last year. What followed was a sudden dip in cryptocurrency prices as bears took over the market.
“We’ve been in depressed levels for the last six months, so it’s really one way from here, which is up,” said Timothy Tam, CEO of cryptocurrency data analysis firm CoinFi, told Bloomberg in an interview.
Factors affecting investor sentiment
There are many other positive developments, however, that could be supporting prices. A number of positive regulatory actions and governments worldwide increasingly adopting steps to support blockchain technology have helped in improving sentiment. It is important to note that the cryptocurrency market often fluctuates and may not always react immediately to such developments.
Additionally, reports of the world’s largest asset manager BlackRock exploring investing in Bitcoin futures has also lifted sentiment.
A slew of positive statements from big names in the financial industry have also helped in renewing faith in virtual currencies. Goldman Sachs, among the biggest investment banks in Wall Street, recently named David Solomon as its new CEO – and he is pretty ken on cryptocurrencies.
In an interview with Bloomberg TV in China, Solomon said that the bank was exploring cryptocurrency trades beyond the publicly-traded derivatives that it already handles.
The fact that internet giants Facebook and Google have allowed cryptocurrency-related advertisements back on their platforms is yet another significant win for digital assets.
Bull market is probably back
Many crypto enthusiasts are bracing for what could possibly be another massive bull run for Bitcoin.
In a recent interview, Michael Arrington – TechCrunch founder – said that Bitcoin ETFs would be a game changer for the coin and its price could reach as high as $25,000 in a few months.
John McAfee, an avid crypto advocate, last week commented on Bitcoin’s sudden spike saying, “The Bull Market IS coming.”
Image via Shutterstock
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