Last month was very significant for Bitcoin — the prices rose from $6,500 to achieve an all-time high of $11,441. Yesterday, the world’s largest cryptocurrency by market cap was able to avoid a break below the $9,000 mark.
There is a good chance that Bitcoin may have topped out above $11,000 for now and a healthy correction would shake out the weak hands, thereby opening doors for a more sustained rally to new record highs.
The charts show that Bitcoin is still being governed by the parabolic resistance – an outlier in an otherwise parabolic trend. It is important to note that the daily volume on the move is the highest in the last two years and is continuing to increase.
At the time of writing, Bitcoin is trading at $10,563 a piece, posting a market cap of $179 billion, an increase of 14% in the past 24 hours. The major factor behind the rally has been the market’s optimism on the entrance of institutional investors and retail traders.
Experts including billionaire investor Mike Novogratz, Coinbase CEO Brian Armstrong, and Bitfury vice chairman George Kikvadze have revealed that at least $10 billion of institutional money is expected to flow into the bitcoin market in the upcoming weeks. Not to forget, Square’s sudden entrance to the Bitcoin market.
Some analysts have also suggested that Thanksgiving and the holiday weekend after it led to an increasing interest and demand for Bitcoin and the cryptocurrency market, as families gathered and discussed Bitcoin on the dinner table.
Analysts continue to be bullish on the rise of cryptocurrency. BTCC CEO Bobby Lee and Novogratz stated that bitcoin will likely surpass $40,000 in 2018 with ease.
Other cryptocurrencies also gained value with Bitcoin. Ethereum, Bitcoin Cash, and Litecoin gained 12%, 13% and 14% respectively.
Top Stories from the Crypto World
1. White House team is monitoring cryptocurrencies
White House press secretary Sarah Sanders said during a press briefing session that Bitcoin and other cryptocurrencies are “something that is being monitored by our team.”
She pointed out that the topic had been brought up in a meeting earlier this week by Tom Bossert, a member of . the Homeland Security team.
Sarah continued on to say, “I know it’s something that he’s keeping an eye on. And we’ll keep you posted when we have anything further on it.”
2. Bitcoin not a legal tender in India says Finance Minister
When asked about the government’s plans to regulate the cryptocurrency, India’s finance minister, Arun Jaitley, told the reporters, “recommendations are being worked at.”
“The government’s position is clear, we don’t recognize this as legal currency as of now.” he added.
A good thing to know: India’s central bank has not issued any licenses to business to operate with cryptocurrencies in the country. In April, the Indian government moved closer to developing cryptocurrency regulations, setting up an interdisciplinary committee including the Reserve Bank, the Ministry of Revenue, the Department of Financial Services, and others.
3. Bank of England does not consider Bitcoin as a threat to global economy
Bank of England Deputy Governor, Sir Jon Cunliffe, has claimed that Bitcoin poses no real threat to the global economy and financial institutions despite its current phenomenal performance in the market.
He said that investors should do a comprehensive analysis of the reasons behind the virtual currencies phenomenal rise to avoid risks.
“This is not at a size where it’s a macroeconomic risk to the global economy, but when prices are moving like that, my view would be investors need to do their homework. This is not a currency in the accepted sense. There’s no central bank that stands behind it. For me, it’s much more like a commodity.” Jon added.