It is due to FOMO (Fear Of Missing Out) that many more people will step into the crypto world once the bitcoin price go past $10,000. The bull-run of 2017 resulted in a lot of “bitcoin millionaires” and if things are heating up for a bull-run like that again, no investors would want to miss out this time around.
The recent news of Bitfinex raising $1 billion dollars reportedly spiked the world’s biggest cryptocurrency, bitcoin, from $7,000 to $7,300 within a matter of minutes. That’s a change of more than 4%. At the time of writing, bitcoin is standing at around $8,156, showing a staggering 10.96% increase in the past 24 hours. The bullish season has set in and the crypto world is buzzing.
Here’s what the CTO of Bitfinex had to say about the billion dollar funding raise.
. @bitfinex is able to raise 1b USDt in 10 days, in a private sale. Private companies, giants in our industry and outside, made investments for > 100m each. A legion of inside and outside users made investments for > 1m each.
— Paolo Ardoino (@paoloardoino) May 13, 2019
If this is, in fact, the reason why bitcoin has spiked in price so much within a matter of minutes, it shows how volatile and speculative bitcoin is. Since there is no physical backing of the asset, speculation is the major driving force behind bitcoin’s price spike. As a result, news of positive developments goes a long way in this space in hyping up traders and investors to invest more with the expectations of the price rising up in the future.
From Tuesday, the leading global cryptocurrency exchange that recently went through a notorious hack of around 7,000 BTCs, Binance, is planning to resume trading on its platform. In the third Binance security update regarding the hack, Chief Executive Officer of Binance Changpeng Zhao has said:
We aim to fully resume deposits and withdrawals on Tuesday. The time will be communicated at a later stage, depending on how the testing goes. This upgrade will require a trading halt. We will update you again tomorrow.
As currently being witnessed, bitcoin is already floating into a bullish space since last month. With Binance re-opening its trading, it is expected that trading volumes will increase even further and the most important thing to keep notice of is bitcoin’s price. One can expect that Binance re-opening its trading will act as a further cushion for bitcoin price and we might even see it spike even further.
— Rekt Capital (@rektcapital) May 13, 2019
The positive sentiment being built around bitcoin is growing only stronger with the developments that are being made continuously. Just now, the much-hyped cryptocurrency platform Bakkt has announced that it will be testing bitcoin futures trading in July. In a blog post by the chief executive officer of the platform, Kellly Loeffler, he stated that:
Today, we’re pleased to update you on the launch of bitcoin futures contracts developed by Bakkt in collaboration with ICE Futures U.S. and ICE Clear US. We’ve worked closely with the CFTC to develop contracts that both meet our customers’ needs for trading, transparency, and market certainty, and are also compliant with Federal regulations.
The Intercontinental Exchange’s independent initiative of launching physically-backed bitcoin futures contracts through Bakkt is a huge step forward in the crypto world. The important thing to keep in mind here is that Bakkt has been working closely with the U.S. Commodity Futures Trading Commission (CFTC) as well. The crypto world is often tainted as uncertain due to the fact that regulation is largely missing. With Bakkt providing a transparent and regulated ecosystem, a largely positive aura will be built around bitcoin overall which can lead to more mainstream adoption. This is expected to lead towards more general adoption.
In other big news, Microsoft is launching a decentralized identity tool on Bitcoin blockchain. With this, a name as big as Microsoft has added further fuel to the fire of crypto rally. Hence, the drive behind bitcoin bull-run is only gaining more steam with each day. This is just contributing to strengthening the positive sentiment about bitcoin which is, in turn, is increasing the FOMO around.
But the question is, where is the asset heading eventually if this bull-run continues? Even if it subsides soon, what is the price target that people in the crypto arena are hoping to get to in the next few years? For crypto permabulls like John McAfee, a million dollars seems just natural for bitcoin. He has previously stated:
I don’t care if it’s a penny today, it’s going to be 2 million dollars very soon…What’s happening in the market has nothing to do with the reality of its value.
For the end-of-the-year price of bitcoin, CEO and Founder of Mycro, André Bruckman, told BlockPublisher:
The industry is bigger than ever, it is more professional, more serious and the image has improved. The next run will come and this time it will be more intense than ever. BTC represents the whole industry and I am very bullish on it. I think there will be another correction and from there I see $50,000 as possible in 2019.
All in all, the buzz around bitcoin has gotten strong. Things are heating up and the rally is only getting stronger. From here on, it will be interesting to see where the asset stops as this upward trend continues.