Why is bitcoin surging? — Here are 4 possible explanations

“The fact the Binance news was shrugged off was telling. Add in the Bitfinex debacle and you can see that the sentiment really is rising,” Greenspan …

If you haven’t heard, bitcoin is back. The digital currency on Thursday booked its eighth winning session in the past 10 and is on track to log four successive winning months — this after recording six losing months in a row, an unflattering record it had never previously achieved.

The bitcoin BTCUSD, +4.87% rally is nearing 100% off its December 2018 low at $3,200, and year-to-date the cryptocurrency has added 70%.

So what’s behind the rally bitcoin? Here are four potential answers:

Technically driven

One thing the bitcoin rally has done is bust through some closely watched technical levels. Whether it’s the resistance at $4,000, the psychological $5,000 mark or some key momentum indicators, the technical outlook has flipped from lower highs to higher lows.

“Bitcoin’s long-term technical profiles continue to point to a new up cycle,” wrote chart watcher Rob Sluymer of Fundstrat Global Advisors.

“With bitcoin now back to a resistance band near $6,000, similar to where it was in Q2 2015, a pullback would not be surprising. However, rather than sell or attempt to micromanage bitcoin exposure, we would strongly encourage investors to remain focused on the longer-term bottoming profile developing,” he said.

Bitcoin, per Fundstrat Global Advisors

Moreover, bitcoin broke above closely observed 200-day moving average, and on April 23, the digital asset scored a golden cross, where the 50-day moving average crosses above the 200-day moving average — underlining its upside momentum.

Read:Bitcoin rises from the ashes

The adoption argument

Arguably, bitcoin’s biggest battle is getting people to use it. Whether as a store of value or a medium of exchange, digital assets have struggled to garner attention, especially from institutional investors.

But, according to a recent Fidelity survey, this is slowly changing. The Boston-based asset manager said nearly half of institutional investors believe digital assets can play a role in their portfolio, while 22% already own some form of digital currency.

“We’ve been seeing steady growth and adoption in the industry, and prices are starting to get in line with the usage of bitcoin,” said Mati Greenspan, senior market analyst at eToro.

Read:More than 20% of institutional investors already own digital assets, Fidelity survey finds

Is sentiment shifting?

Bitcoin, for the first time in a while, is shrugging off bad news. The industry, which is prone to negative headlines, including exchange heists and malfunctions, or the use of cryptos for illicit activity, has been back in the headlines.

“The fact the Binance news was shrugged off was telling. Add in the Bitfinex debacle and you can see that the sentiment really is rising,” Greenspan added.

Binance, one of the largest cryptocurrency exchanges said on Tuesday that hackers stole more than $40 million worth of bitcoin. And on April 26, the New York Attorney General accused crypto exchange Bitfinex and Tether of an $850 million coverup.

But the digital currency barely flinched. After a momentary selloff, bitcoin resumed its march higher.

Read:More than $40 million in bitcoin stolen in hack of world’s biggest cryptocurrency exchange

Are people actually dropping gold?

Or maybe people are trading in a popular haven asset for a slice of digital currency.

On May 1, Grayscale Investments, a subsidiary of Digital Currency Group, kicked off a provocative ad campaign to promote bitcoin as a better alternative to gold. The campaign, which employed the social-media hashtag #DropGold, promoted bitcoin as a better store of value, arguing it’s more secure and borderless.

Read:Bitcoin tycoon Silbert kicks off ad campaign against ‘overpriced metal’ gold

And, it turns out the gold bugs were watching. A day after the campaign launched, the World Gold Council rolled out another explanation as to why cryptocurrencies are no substitute to gold. “Cryptocurrencies extreme daily and intraday volatility disrupts its use as a medium of exchange and discourages strategic investments,” wrote Adam Perlaky, manager of investment research at the World Gold Council.

But, maybe the ad got some investors reassessing their gold investments. On May 7, six days after the ad kicked off, the Grayscale Bitcoin Trust GBTC, +5.41% topped the list of the most actively traded stock on OTC Market Group.

As always, there’s myriad theories behind each and every bitcoin move, but after a torrid 18 months for bitcoin bulls, it doesn’t really matter why it’s up. And on Friday it was up again, rising 2.6% to $6,290.

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Bitcoin’s Liquid Sidechain Makes a Splash on Bitfinex

Embattled Bitfinex has announced the integration of Blockstream’s Bitcoin sidechain, the Liquid Network. The upgrade is already seeing users …
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Georgi Georgiev| May 10, 2019 | 11:00


Embattled Bitfinex has announced the integration of Blockstream’s Bitcoin sidechain, the Liquid Network. The upgrade is already seeing users impressed with faster and more private transactions.


Bitcoin Liquid Integrated At Bitfinex

One of the biggest cryptocurrency exchanges in the world, Bitfinex, has announced the integration of Blockstream’s Liquid Network.

The Liquid Network is an inter-exchange settlement network which links together cryptocurrency exchanges and institutions in order to enable quicker Bitcoin transactions, as well as the issuance of digital assets.

According to the official announcement, the integration will allow for tighter exchange spreads, faster trading, as well as improved confidentiality.

Speaking on the matter was Paolo Ardoino, CTO at Bitfinex, who outlined:

Issuing Bitcoin, stablecoins, and various other digital assets under one blockchain platform makes a lot of sense. […] It reduces the integration burden for an exchange like ourselves, and traders can manage all their assets from a single wallet application. We’re excited to be active on the Liquid Network, and we’re looking forward to watching it develop.

Results Are Already Showing

The integration of Liquid is already proving to be worthwhile, according to derivatives trader Federico (@Federico_Xmas), who noted:

Just tried transferring BTC from TheRockTrading to Bitfinex using Blockstream Liquid, the transaction was executed and confirmed in less than 5 minutes, and best of all the amount is confidential to outside observers. Congrats to both exchanges and all other people involved.

Just tried transferring BTC from @TheRockTrading to @bitfinex using @Blockstream Liquid, the transaction was executed and confirmed in less than 5 minutes, and best of all the amount is confidential to outside observers. Congrats to both exchanges and all other people involved 👏

— Federico 🎅 (@Federico_Xmas) May 9, 2019

Unlike Bitcoin’s public blockchain, transactions carried out on liquid are private by default. This means that the amounts, as well as the types of assets transacted, are hidden from third parties.

Liquid Network Gaining Traction

Launched in October 2018, the Liquid Network is quickly gaining traction all throughout the space. According to a recent blog post, the network has added 14 new members, including Bluefire Capital, Huobi, OpenNode, Gate.io, and others.

liquid bitcoin

Moreover, the company has revealed that further integrations are also going to go live in the coming weeks. Perhaps one of the more interesting upcoming developments is the fact that BitMEX is also working with Blockstream to support L-BTC deposits and withdrawals.

Additionally, Tether (USDT), and Stably (USDS) have also revealed plans to launch on Liquid.

Back in March, Blockstream also released a user-geared wallet for its Liquid sidechain asset called Liquid Bitcoin (L-BTC).

Bitfinex meanwhile was recently served with a court order by the New York Attorney General, alleging a cover-up of $850 million in losses. While no charges are being sought at the time, the exchange says it’ll fight the ‘false assertions.’

What do you think of Bitfinex integrating Liquid? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

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Ethereum’s Joseph Lubin: Bitfinex, Tether Situation ‘Probably Won’t Get Better’

As covered, Bitfinex was accused by New York’s Attorney General of participating in a cover-up to hide $850 million in losses. The allegations revived …

Ethereum co-founder Joseph Lubin, who’s also the founder and CEO of cryptocurrency-related software company ConsenSys, has recently stated he believes the Bitfinex, Tether situation seems to be a “really big mess” that “probably won’t get better.”

Speaking to Bloomberg at the sidelines of the Fluidity Summit conference in New York, Lubin revealed he thinks some good may come out of it, as other stablecoins may gain traction. He was quoted as saying:

Tether is somewhat important to our ecosystem because it’s used by different institutions to effect more fluid trading. There are other price-stable tokens out there — many others — and I think they’re going to gain traction because of this. I think that will be a really good thing.

As covered, Bitfinex was accused by New York’s Attorney General of participating in a cover-up to hide $850 million in losses. The allegations revived concerns over Tether’s backing, as it was supposed to have 1 USD in reserve for every USDT token in circulation.

Earlier this year the company quietly diluted its reserve claims, and soon after it was revealed that USDT is backed by cash and short-term securities equal to 74% of USDT tokens in circulation. Worryingly, Tether accounted for over 80% of bitcoins’ trading volume as of March of this year.

Bitfinex reportedly lost the $850 million as a third-party payment processor claims the funds were seized by governments throughout the world. To fix the situation it’s set to hold a $1 billion initial exchange offering (IEO) that’s said to already have lined up the $1 billion in commitments.

Regarding concerns Tether’s USDT tokens have been used to manipulate the price of bitcoin – something the US Department of Justice is investigating – Lubin noted that “all prices on the planet are being manipulated.” He added:

Any time that well-resourced actors can get in there and do something, you have to expect them to do that. So we need to build better system.

Lubin added that the “status of things is great,” as last year’s price correction aw the system grow “enormously” as those who were “pulled in by excitement riven by price growth” stayed in the crypto space and have been helping build it.

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Crypto Is the Mother of All Bubbles, Says Roubini

Continuing his rant, Roubini addressed Bitcoin’s scalability, stating that it doesn’t even come close to the thousands of transactions per second that …

Nouriel Roubini, an economist notorious for his anti-cryptocurrency stance, recently squared off against Mike Novogratz, ex-hedge fund manager and CEO of Galaxy Digital, at the SALT 2019 conference in Las Vegas on May 8.

During the conference, Roubini did what he does best: he lambasted Bitcoin (BTC) and cryptocurrencies in general, saying crypto is nothing but a giant bubble, and Bitcoin and its peers should not even be called cryptocurrencies.

The infamous economist said:

“Crypto is the mother and father of all bubbles… cryptocurrency is totally a misnomer. To be a currency, you have to be a unit of account, valuable and a scalable means of payment.”

Roubini Lambasts Bitcoin

Continuing his rant, Roubini addressed Bitcoin’s scalability, stating that it doesn’t even come close to the thousands of transactions per second that credit cards are capable of, highlighting that Bitcoin can only process 7 onchain transactions per second.

However, Roubini failed to acknowledge Bitcoin’s scalability solutions such as SegWit, which has increased throughput and reduced transaction fees. He also failed to touch on the lightning network scalability solution, which could potentially process millions of BTC transactions per second.

To end his rant, Roubini claimed that Bitcoin is far too volatile to be a store of stable value, and that it is easily manipulated, causing the price to have violent price swings in either direction.

He said:

“I’ve never seen such a level of manipulation. The reality is, these are not currencies.”

Novogratz Has Bitcoin’s Back

Following Roubini’s attack on Bitcoin and cryptocurrency, Novogratz, a long-time Bitcoin bull and crypto investor, pointed out Bitcoin’s price recovery after 2018’s collapse.

He said:

“The reality is there’s a tremendous amount of stuff going on. In some ways, there’s been a small miracle. The debate is over, bitcoin won. It is now seen by people all around the world as a legitimate place to [store] their value.”

Adding to this, Novogratz highlighted some things going on in the space, pointing to major crypto endeavors like Fidelity’s digital asset platform that’s set to launch this year and the fact that Facebook is launching a cryptocurrency.

All in all, Roubini has been chastising Bitcoin for years, yet it’s still here and continues to capture value and grow to new heights beyond belief.

Do you think Nouriel Roubini will ever change his views on Bitcoin and cryptocurrencies? What’s it going to take for him to change his anti-crypto stance? Let us know what you think in the comment section below.

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Forbes Analyst Explains Why Altcoins Are Not Rallying With Bitcoin, Are Altcoins Dead?

Over ten years ago, Bitcoin was created by the anonymous Satoshi Nakamoto. The goal was to free the world from the shackles of centralized …

Over ten years ago, Bitcoin was created by the anonymous Satoshi Nakamoto. The goal was to free the world from the shackles of centralized institutions by providing everyone with a new form of money which would be used as a medium of exchange and a store of value. Since then, the Bitcoin price prediction has been bullish and bearish at intervals. Shortly after Bitcoin was created, other blockchain developers started creating alternatives to Bitcoin which came to be known as altcoins. These altcoins are cheaper than Bitcoin so some traders are more inclined towards them. However, throughout history, the price of Bitcoin has been strongly related to the price of altcoins. What this means as that as the price of BTC moves higher due to things like positive Bitcoin news or bullish Bitcoin price predictions, altcoins typically rally along with it. A typical example is what happened during the 2017/2018 Bitcoin bull run that took the price of BTC near the $20,000 level.

Bitcoin News Today – Bitcoin Price Prediction 2019 – Why Is BTC Outperforming Altcoins? Cryptocurrency News Today

After being stuck in a bearish territory almost throughout last year during the cryptocurrency winter, the price of Bitcoin started to recover against the USD at the beginning of the year. Between November when it hit $3150 and now, the price of Bitcoin has increased by over 100%. Typically, altcoins would have recorded similar gains but this isn’t the case. Even some of the most promising projects in the space like XRP, and VET are recording losses against the USD and BTC. Why is this so?

According to an article on Forbes, there have been several suggestions from market leaders regarding why the price of BTC is not rallying along with the price of most altcoins. The Chief investment officer of Arca, an asset management firm, Jeff Dorman said that Bitcoin is outperforming altcoins because irrespective of how many altcoins have emerged, BTC is still the most important asset in the cryptocurrency space. This is in line with what the director of digital currency at TradeBlock said.

Bitcoin (BTC) Price Today – BTC / USD

Name Price 24H (%)

bitcoin
Bitcoin(BTC)

$6,278.00

In Dorman’s opinion, the best cryptocurrency to invest in 2019 and beyond is Bitcoin. He also said that the altcoin season is over and traders have shifted their focus to Bitcoin until such a time when Bitcoin starts consolidating. In his words;

“This doesn’t necessarily mean BTC’s returns will be higher, just that the probability weighted return is the highest given that BTC is so far ahead of any other digital asset in terms of adoption and use cases.”

Bitcoin Price Prediction 2019 – Bitcoin Price Analysis – Current Price Of BTC

At the time of writing, the price of Bitcoin was $6,311.67. This means that it is up by 4.23% against the USD. The trading volume over a 24 hour period is $18,553,059,878 and the market capitalization is $111,669,845,201.

The largest altcoin in the market, ETH only recently started gaining upward momentum but is still not moving in the same pace as Bitcoin. Right now, the only altcoin that is doing exceptionally well is Basic Attention Token, the native token of Brave Browser. BAT is currently trading at $0.353582. It is up by 20.44% against the USD, 15.54% against the price of BTC and 18.06% against the price of ETH.

What do you think about the current price action of Bitcoin? Why is Bitcoin outperforming altcoins in your opinion and why is Basic Attention Token surging? Share your thoughts in the comment section below.

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