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Markets Responding To A Stable And Bullish Bitcoin (BTC)

The current bullish levels of Bitcoin (BTC) at above $9,200 have been noted as being the highest in 40 days. This is according to data from CoinDesk’s Bitcoin Price Index (BPI). Checking coinmarketcap.com, and in particular, the total market capitalization, we find that this value has almost doubled since the early April levels of $250 Billion. Current total market cap levels stand at $418.8 Billion and show no signs of slowing down.

The last time the marketcap was at the $418 Billion mark, was back in early March this year. Bitcoin (BTC) was valued at around $10,000. Ethereum (ETH) was around $840 and Ripple (XRP) trading at around $0.88 and close to the same levels of today. Looking at today’s prices, these top 3 coins are valued as follows: BTC – $9,262; ETH – $682; and XRP – $0.91.

So what could be causing the current and sudden market resurgence?

Firstly, more and more traditional investors are turning to cryptocurrencies as alternative forms of investing. The known cases have been self evident over the past few weeks with the Soros Fund Management firm getting the go ahead by George Soros, to invest in crypto. The Rockefeller arm of investing, VenRock, has also partnered with crypto startup, CoinFund. They aim to collaborate in more blockchain ventures.

Now, news reaching Ethereum World News indicate that more American states are embracing cryptocurrencies and blockchain technologies. There is currently a bill in the Californian Senate to legally recognize blockchain technologies. California wants to allow companies registered in its state, to store data, including information about stockholders, on a blockchain.

There is an old African proverb that says, Where there is smoke, there is a fire. When the American States start passing bills about blockchain, it is only a matter of time before cryptocurrencies slowly sip into their economies. The current mayor of Lousiana City has even recommended an ICO to solve the financial woes of the city.

Japan has also recently flirted with the idea of restoring confidence in the crypto-markets by adopting self-imposed rules. 16 exchanges that are currently registered with Japan’s Financial Services Agency (FSA) have launched a self-regulatory organization dubbed the Japanese Cryptocurrency Exchange Association.

It seems like regulators are warming up to the concept of Cryptocurrencies and blockchain technology.

We can use the famous Buddhist analogy to explain their current 180 degree turn on crypto and blockchain. This Buddhist analogy is the famous one about emptying your tea cup before you add some more. It means that for you to accept new ideas, you have to first empty your mind of the old ones in a manner similar to pouring out tea. This is what is happening.

Where there is smoke, there is fire! But in this case, the fire is good for cryptocurrency markets.

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Bitcoin Crushes $9,000 on Growing Signs of Mainstream Adoption, Wall Street Interest

Bitcoin has officially hit the $9,000 mark today, as the massive user adoption from hedge funds, soon-to-be-released futures markets and further increases in the number of users.

Ironically, many on the /r/BitcoinMarkets subreddit expected the price to drop over the Thanksgiving weekend, in part due to US banks being closed. However, over the past week the price had shown strength, consolidating in the low $8,000s. Twice the price briefly dipped into the $7,800 range, but those dips were rapidly bought.

Apparently people didn’t merely take advantage of Black Friday to buy TVs and electronics, but also stocked up on Bitcoin. The price began trending up yesterday as the market began adding volume, and today broke the next major psychological hurdle of $9,000.

More to come?

Thought many mainstream finance pundits regard Bitcoin as a bubble, the market has not shown any signs of a so-called “blow off top,” meaning a sudden and major reversal is unlikely at the moment. Bubble cycles often end with a massive spike in prices that’s almost immediately followed by an even larger sell-off.

The next major hurdle, and arguably the largest psychological barrier of all, is $10,000. However, that may not be as hard to breach as one might think, considering that the combined price of Bitcoin and Bitcoin Cash already well exceeds $10,000. That is to say, anybody who owned Bitcoin prior to August 1 and didn’t sell their Bitcoin Cash is already enjoying prices in excess of the next major target.

Analysts such as the normally bearish Tom Lee, founder of Fundstrat, are turning bullish. Lee recently indicated that his near term price projection is $14,000. He explains away the brief dip that followed the cancellation of SegWit2x as a shaking out of weak hands. At press time, Bitcoin’s price on the GDAX exchange was $9,085.