Bitcoin’s price saw a substantial increase beyond the horizon of $7,000 for the first time in this month on July 17th, owing to a dramatic market shift that took place in a matter of minutes.
For quite some time, Bitcoin’s price lingered around a threshold of $6,700, but over a course of a few minutes, owing to some major news of potential investments about to made by some heavyweight financial powerhouses in the crypto-space, the market had shifted dramatically at a swift pace, dragging the world’s most priced cryptocurrency to a value of above $7,400. The last time Bitcoin saw a market value close to this was back in June, 2018.
In the crypto-market, whenever Bitcoin’s value surges and crosses a certain threshold, a usual increase in the remaining major cryptocurrencies are also reported alongside. As this spike gained attention, the market price value of cryptocurrencies like XRP, EOS, and Litecoin, commonly known as LTC, also attained sudden dramatic gains in their values.
This positive rate of acceleration by the major cryptocurrencies around the world heralds a reversal in the trend seen in the recent past, and hints at a possible upward trend when it comes to the universe of cryptocurrencies.
Before this upward spike in the Bitcoin’s value, a consistent trend of breaking the resistance barriers was recorded at $6,400, $6600 and $6,700. The key hurdle remained at $7,000, but the trend predicted it to be broken very soon. Up until July 16, 2018, although Bitcoin’s value lingered below the threshold of $7,000, but a recovery trend was recorded. A trend of breaking the stiff resistance barriers was noticed by most of the digital assets, opposed to the all-embracing declines that were recorded previously.
BlackRock’s interest in Bitcoin
Market values of all the major cryptocurrencies of the world are towards an upward swing due to the potential of heavyweight influencers entering the crypto-market. The major market shift was caused by the news of possible investments about to be made by some heavyweight financial influencers. Reported by Financial News, a $6.3 trillion asset management influencer, BlackRock, the world’s largest provider of exchange-traded funds (ETF), was considering its investment in the market of Bitcoin. This news report shifted the market trend substantially, and more such factors contributed towards the upward gains made by all the major cryptocurrencies around the world. As this news spread widely, major investors from around the world were invoked to enter the crypto-market in order to gain as much profit and benefit as possible.
Rise of Bitcoin futures volume
Another positive sign for Bitcoin was reported by the Chicago Mercantile Exchange on July 20th in a Tweet. The average volume of Bitcoin futures have seen an average of 93% growth in Q2:
Bitcoin futures average daily volume in Q2 grew 93% over previous quarter, while open interest surpassed 2,400 contracts, a 58% increase. Learn more about trading #Bitcoin futures: https://t.co/adjWVWXBPQ pic.twitter.com/UQWC3nGGrI
— CMEGroup (@CMEGroup) July 20, 2018
This market shift is indicating a trend that will take the values of cryptocurrencies very much above the levels that we have seen in the recent past. According to the CEO of OnChain Capital, Ran Neuner, following the suit of major investors, once the institutional giants are in on this game of investing in the crypto-market, cryptocurrencies will see an upward spike that will overshadow the crypto-run of 2017 completely and will make it look like ‘a warm-up’.
While talking to CNBC in June, Neuner had predicted Bitcoin’s bullish run if it had crossed $7,400 level with high volumes and it seems the case now.
Once BlackRock and other giants enters the crypto-space, it will open up an exciting and transformational phase for the crypto-market. A huge chunk of institutional capital that has not been involved in the crypto-space, will now have the chance to enter the crypto-world once this movement of investments is mirrored across the crypto-industry.
All in all, Bitcoin has dragged its gains from a negative territory towards a promising positive incremental territory, and in the recent times, almost all the major cryptocurrencies of the world are showing up an exciting and potentially game-changing upward trend. As more and more heavyweight financial game-changers keep on entering the crypto-space, this trend is expected to increase and heralds a new dawn in the game of cryptocurrency.