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- The cryptocurrency market has been soaring recently, and one cryptocurrency in particular — Bitcoin (BTC) — is leading the charge
- In this sense, Michael Saylor’s Microstrategy, EV maker Tesla, and crypto-focused investment companies Galaxy Digital Holdings and Voyager Digital are among Bitcoin’s most prominent institutional sponsors
- Iqbal Gandham, VP of Transactions for security and infrastructure solutions provider Ledger, told Cointelegraph that when important price milestones are crossed, there is usually a delay — much like the one we are seeing now — so that the market can stabilize, the longer we keep it here, the more people will support it
The cryptocurrency market has been soaring recently, and one cryptocurrency in particular — Bitcoin (BTC) — is leading the charge. After suffering through a period of extreme volatility for the greater part of the last 60 days, the flagship cryptocurrency has shown signs of recovery, even breaking over its 200-day moving average earlier this month, suggesting that a move to the $50,000 psychological barrier is imminent.
To put things in perspective, BTC has gained more than 55 percent in the previous month alone, helping to push the whole market value of this still-developing industry back beyond the $2 trillion levels. These astonishing statistics can be ascribed in large part to the recent surge in institutional usage in this area.
In this sense, Michael Saylor’s Microstrategy, EV maker Tesla, and crypto-focused investment companies Galaxy Digital Holdings and Voyager Digital are among Bitcoin’s most prominent institutional sponsors. Moreover, a number of traditional financial institutions have lately entered the crypto battle. Wells Fargo, one of the country’s oldest banks, is the newest addition to a growing list of financial institutions offering affluent clients indirect access to Bitcoin. JPMorgan, BNY Mellon, Morgan Stanley, Bank of America, and Goldman Sachs are among the many notable financial organizations that provide a variety of crypto-focused financial products. Finally, according to recent SEC filings, a growing number of wealth management firms, including Illinois-based Clear Perspective Advisors and Ohio-based Ancora Advisors, have been buying large amounts of Grayscale’s Bitcoin Investment Trust (GBTC) shares, indicating a growing demand for the asset among institutional investors.
Iqbal Gandham, VP of Transactions for security and infrastructure solutions provider Ledger, told Cointelegraph that when important price milestones are crossed, there is usually a delay — much like the one we are seeing now — so that the market can stabilize, the longer we keep it here, the more people will support it.
When it comes to the elements that will propel this rally, he believes it will be psychological rather than news-driven. People are simply looking for a trend, so even a smidgeon of good news might send the price soaring. It’s no longer a question of if, but rather when. According to Daniele Bernardi, CEO of fintech management firm Diaman Group, all of his company’s unique indications for BTC’s near-term development are highly favorable. However, in his opinion, alt-assets such as Ether (ETH), Cordano (ADA), and Binance Coin will drive the next wave of positive market development, rather than Bitcoin (BNB).
Finally, even if Bitcoin might trade above $50,000 in the next days, according to Talal Tabbaa, chairman and co-founder of CoinMENA — an FTX-backed Middle East-based cryptocurrency exchange — such short-term price movement is meaningless when looking at the big picture, technical analysis has limits and should not be relied on entirely to make decisions. I think it’s insane that some individuals believe they can foretell the future by drawing lines on a chart. Macro developments, like China’s mining ban or the US’s pending approval of ETFs, will have a far greater short-term influence on Bitcoin’s movements than any technical analysis. Despite the fact that there has been some ambiguity about where the crypto sector is heading in recent months, there is enough data to suggest that the market is poised for another bull run in the near future. A golden cross pattern — between the 30-day and 60-day moving averages of Bitcoin’s hash ribbon — was recently seen, according to blockchain analytics company Glass node.
Finally, the hash rate recorded by Glassnode implies that miners who were forced to relocate their operations from China due to recent regulatory tightening may have finally found a new home abroad. In this line, it’s worth noting that five North American mining companies — Marathon Digital, Riot Blockchain, Bitfarm, Argo Blockchain, and Hut8 — claimed a 58 percent rise in operating production little over a fortnight ago. Elon Musk has changed his mind on Bitcoin after slamming it earlier this year for its negative environmental effect, giving investors — who listen to the Dogefather’s every word — even more reason to be optimistic about the cryptocurrency. Not only that, but Twitter CEO Jack Dorsey and Cathie Wood of Ark Invest have reaffirmed their long-term commitment to the leading cryptocurrency.
A spokesman for cryptocurrency exchange Bitstamp informed Cointelegraph that the number of active retail female investors has increased by more than 24 percent in the previous six months, indicating that BTC is becoming more popular. In the same time period, the percentage of trading volume created by female investors at Bitstamp grew by an incredible 58 percent, indicating a surge of new investors interested in cryptocurrencies. Finally, with a growing number of countries — most notably El Salvador — beginning to take various steps to recognize and regulate the crypto market, it will be interesting to see how the next few days unfold for Bitcoin, especially given the current market sentiment, which appears to be overwhelmingly positive.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
