Yes, it’s easy to get excited. Bitcoin was over $8,000 on 24th July and has made gains of 20% over the last seven days. We haven’t seen it perform like this since May.
And, according to Bitcoinist.com, “Bitcoin’s dominance index has also risen to hit 47%, it’s highest score since December 2017.”
Why is everyone suddenly so upbeat about Bitcoin and does it really mean that a major bull run is in the offing?
Wall Street is more friendly
One explanation is that Wall Street is suddenly showing signs of warming up to crypto. Goldman Sachs and Blackrock both made announcements indicating they are taking it seriously. David M. Solomon, Goldman’s new CEO said the investment bank is looking to get into Bitcoin and cryptocurrencies. And at Blackrock, the world’s biggest ETF provider, it is rumoured that it is also getting into crypto. Furthermore, traders like Barry Silbert don’t believe Blackrock’s claims that it has never had a client who wanted to invest in cryptocurrency and pointed to a GrayscaleInvest report stating that 56% of digital asset investments came from institutional investors.
Regulations are also starting to take a more solid shape and statements to the effect that cryptocurrency is not a threat to the global financial system have also encouraged people to look on crypto more kindly. It is also thought that global regulators are going to take a softer approach to regulating cryptocurrencies than previously thought.
G20 sees the benefits
And, G20 said cryptocurrencie might be beneficial for economies. It also looks as though a bitcoin ETF (Exchange Traded Fund) may be on its way as early as mid-August. A source at the CFTC said about the probability of a Bitcoin ETF: “I would call it 90% at this point. The crypto markets have moderated and regulators have watched the lack of drama surrounding Bitcoin futures across several global exchanges. The price moderation and adoption of a ‘peer product’ is what the conversations have centred around. In January we were justifiably concerned about a bubble and the harm a quickly approved product could attract speculators and create losses that led to significant lawsuits. Now, those factors seem to be mitigated significantly.”
Are we witnessing another massive resurgence for bitcoin? What do you think?