Opinions

Bitcoin Breaks $7,000 Barrier Overnight

It is predicted that the currency would hit the milestone of $50,000 by the end of 2018

Over the period of the last few weeks, the volatility of cryptocurrencies have seen new heights this year when the market capitalization plunged from the humongous valuation of $303 billion to under $200 billion, losing to about 36% of its value. The major reason being the drama related to the Exchange Trade Fund and the Securities and Exchange Commission. SEC has blatantly rejected ETF proposals multiple times and with each rejection, the market capital has suffered. A total of 9 proposals have yet been submitted with each and everyone being rejected. They claim that the fraudulent and manipulative activities that are being carried out in the world of crypto can not be controlled, hence they have rejected multiple proposals, restricting institutional support.

Although the ETF proposals have been turned down with the overall market suffering, Bitcoin still has managed to rise from the ashes. The premium cryptocurrency rose for $6,700 to over $7,000 in minutes. Usually, when bitcoin sees individual spikes, not only is the market capitalization affected from the surge due to the huge dominance of 52.6%, but the individual cryptocurrencies are also affected.

src: coinmarketcap

The graphs of the individual currencies also show general patterns of growth. One of the evident reasons could be the reconsideration of the ETF proposals by the SEC once again. The leading analyst of CNBC’s Fast Money, Brian Kelly predicted that the proposals have a high possibility of approval in the beginning of 2019.

Since the event of bitcoin hitting its all time highest, the currency has faced dramatic falls because of the major sell off event at the beginning of the year. Since then, Bitcoin is struggling to hover over the $7,000 mark. The currency fell but is gaining momentum once again. Based on past facts, it can be predicted that the positive momentum of the currency will go on. According to Aleh Tsyvinski,

Momentum is actually something simple. If things go up, they continue to go up on average, and if things go down, they continue to go down.

Also, taking to Blockpublisher, Chris Bruniske told about his stance relating to the current situation of the coin market and bitcoin in general, under the light of the recent ETF rejection events, he claimed that the currency would survive and there wasn’t a thing to worry.

Following the wave of bulls of the market. One of the most prominent bull, Ran Neu Ner tweeted that apart from the bearish behavior that the cryptocurrencies showed, he was positive about the currency and predicted that bitcoin would hit $50,000 by the end of the year.

In the light of recent events of bitcoin showing little bullish runs without institutional support and ETF rejections, it is safe to say that the currency has a lot of potential and with the predictions of the ETF being approved in the near future, any investments being made now in this domain would bear fruit.

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Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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