How & why did Bitcoin gain 10% yesterday
Bitcoin has gained upto 10% in value in the last twenty four hours alone and has pushed the $7000 USD mark. At the time of writing the price of bitcoin is $7445 USD. Other major cryptocurrencies like Ethereum, Ripple, Bitcoin Cash, etc are also chalking up a 5-10% gain in the last couple of days.
The price of Bitcoin started to rise, rather drastically, yesterday at 23:00 UTC. The value pushed the $7000 USD limit within a time frame of ten minutes and kept going till it touched $7500.
Since this insane increase in value, the cryptocurrency has managed to keep itself in the same range for the past 12 hours.
After a long and heavy couple of months, with a series of hacks and a large number of regulations being slapped on the market, the cryptocurrency market is finally starting to see the dramatic gains it is known for.
The first quarter of this year, the cryptocurrency was coming down from it’s all time high of $20,000 USD, averaging a steady value between $8000-$9000 USD. The currency has remained pretty steady between the two only once dropping to below $7000 in April.
The cryptocurrency, however, since the beginning of 2018’s third quarter has been dwindling between $5000 and $6000 USD until yesterday, when for no rime or reason the price shot up by 10% in a matter of hours.
The community is flooded with speculations over how and why this sudden jump is taking place but here are two of the most likely reasons.
Before close of play yesterday, Financial Stability Board, an international watchdog, released a report in support of the cryptocurrency. The report states that Bitcoin, other cryptocurrencies and their market pose no threat to the financial institutions of the world.
Quoting from the report, “do not pose a material risk to global financial stability at this time.”
Another important reason why the cryptocurrency may be increasing in value at such a rapid speed is because a lot of senior investors are starting to take interest in the market and are looking at ways to take advantage of it.
Among the people looking into how to integrate cryptocurrencies into their businesses and take advantage of the market are names like Steven Cohen, an American investor and hedge fund manager and BlackRock, the biggest asset managers in the world.
Another Bitcoin Bull?
With the price of bitcoin and all other major cryptocurrencies raising, there is a lot of talk about another Bitcoin Bull, similar, but better than the last one. Many enthusiasts are predicting that this is the second Bitcoin bull and that this time around the cryptocurrency will surpass the previous high of $20,000 USD.
However, it could just be the effect of a large number of financial institutions, banks and watch dogs coming onboard after doing their due diligence. The backing of the SEC and FSB in the last month alone has lent the cryptocurrency market a lot of legitimacy and trust amongst investors and has also assuaged the reluctance from the minds of many companies with regard to investing in bitcoin.
Whether this is the result of kinder regulations coming from a place of understanding or whether this is another Bull is still yet to be determined. Either way, the average bitcoin investor is set to see large gains over the next couple of hours.