Why Bitcoin Price is Rising steadily Once Again
Bitcoin gaining momentum
Bitcoin is seemingly gaining momentum once again. Mid-December last year the world’s largest digital currency almost hit the 20,000 dollar mark before crashing all the way to 7,000 dollars. The crash caused panic to some investors, and the bubble talk became more popular. However many Bitcoin analysts predicted that Bitcoin would soon regain its momentum with some like Tom Lee predicting that the digital currency would even hit the 250,000 dollar mark before 2022.
Over the last week, Bitcoin has been moving up and has kept moving closer to 10,000 dollars after cracking the resistance zone of 9,000 dollars. Brave New Coin CEO Fran Strajnar believes Bitcoin is moving up because of many reasons. The CEO believes the main reason for the upward trend is the improvement of the Bitcoin lighting network. More to that outside forces especially from regulators are bringing investors back.
According to Strajnar: “The United States has moved in to regulate security tokens but not commodity tokens. This move has attracted major value investors who have stepped in to invest in the currency thus boosting it. As the Soros’ and the Rockefellers’s of this world come into the crypto ecosystem, this market will be legitimized and will continue to move in a very positive way. This means that the chances of Bitcoin ETF being approved by the SEC have moved up.”
George Soros’ wealth management firm which is worth more than 26 billion dollars is already planning to trade digital assets. According to Adam Fisher who works at the fund, the fund has already been approved to trade cryptocurrencies. More to that Venrock Capita Firm associated to the Rockefeller family is also getting into crypto trading. In fact, they have already partnered with CoinFund to invest in startups which also issue their own crypto coins.
The CEO of Kowala a blockchain platform which offers its own digital currency Eiland Glover believes that: “The world is moving in the right direction because traditional financial industry players are entering the crypto trading markets.” Worlds’ biggest banks are becoming more interested in the crypto than they did before. A good example in Barclays Bank which is setting up a crypto trading desk. On the other hand, Goldman Sachs has hired crypto trader Justin Schmidt.
With more financial institutions investing in Bitcoin, the digital currency is moving positively towards becoming mainstream.
The United Stated tax day had caused a lot of panic among Bitcoin investors, and there was a lot of sell off for people to settle their crypto taxes. This shows the reason why after the tax day Bitcoin started rising. Since then there has been a steady rise.
One other positive thing is the reduced number of hacks after exchanges became more careful with investors and the security systems. A good example is the exchanges in Japan which have formed a self-regulation association in order to ensure that the chances of fraud are reduced.