Bitcoin is looking unstoppable as it nears $12,000. Parabolic is the right word to describe this preposterous growth.
Bitcoin price has already surpassed $12,000 in both South Korea and Japan, two major Bitcoin markets that are accountable for approximately 74% of global Bitcoin trades. At the time of writing Bitcoin is trading at $10,949 a piece, posting a market cap of $182 billion — a market valuation that is higher than most major financial institutions.
It all began with optimism surrounding billions of dollars in institutional money being moved into the Bitcoin market, which led investors in the cryptocurrency and traditional financial markets to invest in Bitcoin.
As per the CEO of Coinbase, estimated the amount of Bitcoin investment from institutional investors could be at $10 billion.
If that wasn’t enough, one of the most prestigious hedge funds Man Group released their official plans to invest in Bitcoin after the launch of CME’s Bitcoin futures exchange.
Historically speaking, parabolic growth is a sign of a short-term crash. Bitcoin may start to show signs of bull market exhaustion. A pullback to $9946 looks likely, and a violation there would expose support at $9,600 and $9,400.
But Bitcoin is Bitcoin. The Nasdaq story could take the prices to $13000 before we see any correction. That said, only a break below $9,000 would signal a bullish-to-bearish trend change.
Interesting trivia: Last month, the daily trading volume averaged around $3 billion, a volume that is lower than that of Apple, the most liquid stock on earth. As of now, the daily trading volume of Bitcoin is above $10 billion!!
Top Stories from the Crypto World
1. Nasdaq plans Bitcoin futures launch in 2018
According to the Wall Street Journal, Nasdaq, the world’s second largest stock exchange by market capitalization, is aiming to launch Bitcoin futures contracts in the first half of 2018.
Nasdaq is seeking to position its product different to that of Chicago-based CME Group. The report reads:
“Nasdaq’s Bitcoin contract would debut on Nasdaq Futures, or NFX, a marketplace that the New York-based exchange group launched in 2015 that until now has mainly focused on energy trading, according to the people familiar with the situation.”
2. Russian central bank issues new warnings against cryptocurrencies
The Central Bank of Russia’s annual Financial Stability Report noted an apparent bubble in the cryptocurrency markets, stating that it may lead to “substantial losses” for investors.
The report also stated that cryptocurrencies may be used for criminal activities, in particular for money laundering and terrorism financing. It further added:
“The task of national and supranational regulators is to minimize those risks via developing a coordinated approach to regulation of the cryptocurrencies market and restricting the potential of high-risk investments and transactions.”
A good thing to know: This is not the first time Russia’s central bank has come out against cryptocurrencies. Deputy governor Sergei Shvetsov said just last month that the bank would try to block non-Russian websites from selling Bitcoin in the country altogether.
3. TechCrunch founder to raise $100 Million, XRP Fund
TechCrunch founder Michael Arrington revealed he’s raising $100 million for a hedge fund that will buy and hold crypto assets while making investments in token sales and (some) equities and debt.
The fund claims to be the first that will require all limited partners (LPs) to make investments in XRP, the cryptocurrency that powers San Francisco startup Ripple’s RippleNet software.