Bitcoin has broken up to within touching distance of the infamous $6,000 valuation, as a wave of positive sentiment returns back into the crypto economy.
On the back of the news of asset management giant Fidelity Investments being “weeks away” from entering the crypto space, a potentially incoming Ethereum futures product approval by the CFTC, and finally a mainstream realisation of the 50% gains seen (or missed) so far in 2019 for just BTC alone, it’s no surprise that Bitcoin is now on the verge of starting a new bull run.
Bullish breaks in price are historically not a new thing going into New York Blockchain Week (christened as the pre-consensus pump), but given all the hopium and hype prior to this week of heavyweight conferences just a year ago, this year we have seen a renewed focus on technology and innovation rather than institutional money and speculation going into what some may consider the most important blockchain week anywhere in the world.
Fidelity Investments – one of the biggest asset managers on the planet with close to $7 trillion in funds under their custody, including a $2.5 trillion war chest of investments in their own fund – will apparently now launch a crypto trading service “within weeks”, according to a Bloomberg report.
Well-known crypto commentator Anthony Pompliano commented: “Fidelity will begin helping institutional clients buy and sell Bitcoin in the coming weeks.”
He also speculated that “eventually, every financial services company will do this”, and if Bitcoin can achieve a $100 billion-plus market cap without institutional interest, “imagine what happens when the smart money joins”.
You could attribute Bitcoin’s $20,000 bull run to the CFTC’s decision to let the CME and CBOE launch a Bitcoin futures product back in December 2017. Looking back, we can see that the launch of that contract was a local high for the decentralised asset class, but the decision to now potentially allow the launch of an Ethereum futures contract could be an even more important bullish catalyst for the wider crypto markets.
If the CFTC goes through with this approval, it may signify to the market that Ethereum is well and truly under its regulatory jurisdiction as a non-security. This could then lead to the ‘regulatory door’ being opened for other decentralised assets that may also qualify under the powerhouse US regulator’s criteria for futures product listings.
According to crypto trader Pizpie, if Bitcoin can break out of the “God-tier support level” of between $5,800 and $6,000, a possible retest and bounce from this key support level may confirm the end of the current bear market as the global asset sets up for a possible “multi-year bull market” stretching all the way to the next halving of Bitcoin’s inflation rate in the summer of 2020.
If Bitcoin can move through this historic support-turned-resistance line soon, a short-term parabolic advance all the way to a five-figure valuation may soon be on the cards for BTC.
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