In an exclusive commentary by eToro’s Senior Market Analyst, Mati Greenspan, a new theory as to where the new Bitcoin (BTC) volume is coming from has emerged. According to Mr. Greenspan, Bitcoin has held the critical level of $8,000 for more than 40 hours and is an indication of a possible sustainable rally that could get the King of Crypto to $10,000.
Greenspan also added that in traditional markets, when there is a strong breakout as the one seen in the crypto-verse, it is considered as a powerful move and a trend reversal. He would also add that the crypto-markets are the riskiest markets that he has ever witnessed in his trading career.
He offered the following words of advice for crypto-traders and enthusiasts:
Of course, trading is always risky and cryptoassets are the riskiest market that I’ve ever known. So it always pays to keep a diversified portfolio.
So how is Japan fueling the Bitcoin rally?
Mr. Greenspan observed that the Japanese bond market had a massive spike earlier this week on speculation that the Bank of Japan (BoJ) is close to announcing measures to scale back on its massive monetary stimulus. Speculation is that the BoJ could revise their interest rates and do their best not to strengthen the Yen. The BoJ is meant to review its policies on July 30 -31.
This means that the savvy traders of Japan, are using Bitcoin (BTC) to hedge from the possibility of the Yen losing value. With BTC being a legal currency in the country, this could be where the extra volume in the crypto markets is coming from.
Another reason – according to Greenspan – for the possible increment of volume in the crypto markets, is the new SBI Virtual Currencies exchange: VCTRADE.
Greenspan had this to say with respect to SBI’s new exchange:
A new virtual currency desk by the financial giant SBI Group opened for business on June 4th. This could definitely be leading to fresh inflows to the market, but I haven’t managed to find any volume stats for them just yet.
In conclusion, the current Bitcoin rally can be confirmed due to the fact that BTC has maintained levels above $8,000 for an impressive time frame. However, due to the historically volatility of the markets, it is always good to be cautious and to not be over confident of a bull run.
Other factors that are responsible for the Bitcoin Rally include:
- The Bitcoin ETF Frenzy
- Facebook and Google Ads reversing their blanket ban on crypto ads
- Blackrock announcing their interest in blockchain technology and cryptocurrencies