Bitcoin Surges Above $8,000 - Hits 2-Month Highs

Bitcoin is now up over 40% from its June lows, breaking above $8,200 for the first time in over two months this morning and dragging the rest of the crypto space with it.

Bitcoin has broken above numerous key technical levels (4-month downtrend, 50DMA, 100DMA)...

“We’ve been in depressed levels for the last six months, so it’s really one way from here, which is up,” said Timothy Tam, chief executive officer with CoinFi, a cryptocurrency data analysis company, in a phone interview from Hong Kong. “The timing is always difficult to predict but I think we’re at the start of a secular bull market.”

The rest of the crypto space is also rallying...

Ethereum is bouncing but relative to Bitcoin it is back to the same level it started the year, and found support in April...

No specific catalyst for the overnight move but generally positive news recently about impending approval in the United States for a cryptocurrency exchange traded fund (ETF) have helped bolster demand recently, as have comments by BlackRock last week that the world’s biggest investment firm was looking at building a cryptocurrencies team sparked notice that institutional investors are perhaps on their way.

As Bitcoinist reports, popular cryptocurrency trader and CEO of investment firm BKCM LLC, Brian Kelly spoke to CNBC’s Fast Money, outlining three reasons for which the recent Bitcoin price rally is real.

1. ETF Speculation

Kelly noted that “the chances of an ETF in 2018 are relatively low.” With that said, he also goes on to share that “this doesn’t stop speculation” as a prominent factor for the current rally.

On June 26th, the US Securities and Exchange Commission (SEC) received an application for a Bitcoin ETF. It was filed by Cboe Global Markets who’ve proposed to partner with SolidX and Van Eyck Investment. While this is not the first time Cboe has filed for a Bitcoin ETF, Bitcoinist outlined three reasons why its chances of getting approved are higher than ever.

Building on the ETF hype, the SEC has received and influx of comments on behalf of cryptocurrency enthusiasts, most of which are overly positive and express serious interest for it to happen.

2. Institutions Are Getting Serious

Kelly said:

I can tell you from the calls that I’m getting, people that looked down on it [Bitcoin] in December didn’t like the price and are coming back now saying – Alright, this thing is not going away, we need to understand what it is, where does this asset class fit into our portfolio.

He is not the only one sharing this sentiment. Earlier this month, Digital Currency Group’s Barry Silbert also reiterated on the importance of institutional money pouring into the market. Silbert noted that infrastructure for “big money” is getting closer to being laid down. Both of them outlined Coinbase’s Custody solution, which paves the way for institutional money.

Earlier this month, BlackRock, the world’s largest asset manager and ETF provider was reported to mull interest in Bitcoin and cryptocurrencies. New York-based investment bank Goldman Sachs also announced they have appointed a new CEO who’s “keen on Bitcoin.”

3. WEB 3.0

While there is no unanimous or universally agreed-upon definition of WEB 3.0, Kelly refers to it as the “new internet” and the “improved internet.”

The trader explains that the institutions see cryptocurrencies as a critical factor bridging existing ecosystems to the “new internet.” Hence, the new technology would be a welcome addition to their portfolios.

Bitcoin is Very “Reflexive”

Apart from the reasons Kelly outlined, he also discussed with Futures Now trader Tim Seymour the sentiments around Bitcoin’s increasing price.

Seymour noted that investors are more comfortable buying Bitcoin at $7,800 than they are at $6,000. He also explained that they will probably be even more comfortable at $10,000. Kelly agreed, comparing Bitcoin to gold and other currencies, saying:

The more value comes, the more it [Bitcoin] becomes.

Comments

Yellow_Snow Tue, 07/24/2018 - 08:02 Permalink

Go BTC  !!!

Looks like a run to 10,000 is very likely...

  however, a pullback to $7000 may follow in August-September... 

    - that maybe a good thing as it allows for a right shoulder to form a 6-mos wide H & S pattern

That's what the charts show...

Dennisen crazytechnician Tue, 07/24/2018 - 08:56 Permalink

You'll notice that the shape forming is the ever-important 'Inverted Brassiere', indicating renewed and powerful uncertainty regarding the direction of its Kondrattieff cyclical effervescence. Based on past fundamental observations of multi-colored lines drawn across little tiny peaks and arbitrary points along it's path of least resistance, it appears a breakout is a distinct possibility in the short term, notwithstanding a sharp drop in directional absolution that overcomes the current trendlines that may sustain the current levels, in which case, base-building or possibly ceiling-discovery could ultimately become the dominant probability.

In reply to by crazytechnician

crazytechnician Exponere Mendaces Tue, 07/24/2018 - 13:24 Permalink

You cripplecoiners crack me. When you realise the only way LN will ever work is with one centralised hub surrounded by spokes it's gonna be epic. You put all your eggs in the BlockstreamcCore basket and now the only thing left you have to defend it is your own ignorance and lies peddled by your masters. Markets punish ignorance. The moment of realisation will be epic. You should have smelled the bullshit a mile away when core stripped the signature data from the block instead of agreeing to block size increase. But what else is there to be expected from a core minion ?

In reply to by Exponere Mendaces

sessinpo brushhog Tue, 07/24/2018 - 09:03 Permalink

 

brushhog Captain Nemo d… Tue, 07/24/2018 - 08:07 Permalink

Digital fool's gold.

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I am guessing you still use fiat which is hilarious because that is also digital. Thus you are being hypocritical because you are under the illusion that just because you have a few paper representations in your wallet you think it isn't digital. Most transfers of currency happen digitally, bud. I guess that makes you the fool.

In reply to by brushhog

sessinpo SoilMyselfRotten Tue, 07/24/2018 - 09:11 Permalink

SoilMyselfRotten Captain Nemo d… Tue, 07/24/2018 - 08:08 Permalink

While alts have been pretty flat, tells me the institutional money is coming in, strap in, this thing is going higher

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Not necessarily. Alts are down while BTC is up. Thus it could just be people selling alts and going into BTC. Just look at the bitcoin dominance chart via https://coinmarketcap.com/charts/

Institutions will be coming in, but don't expect to happen over night. Keep in mind, this is still a speculative market so the market will tend to move before things become evident.

Lots of ground work has been layed and continues to this day. Look for Fidelity to get into the game b end of year with possible custodial accounts.

We will see BTC over 50k this year.

In reply to by SoilMyselfRotten

tmosley Captain Nemo d… Tue, 07/24/2018 - 09:03 Permalink

You clearly don't understand adoption curves.

The price will increase until it reaches full adoption. Once it reaches 10%, the exponential phase of price increases will be mostly done, and we will only have another 10x increase in price as it reaches full adoption.

BTC will not experience this unless they get the LN to work, but there are fundamental limitations to the approach they are taking which are likely not possible to overcome without incorporating ASI (artificial superintelligence) route planners. Otherwise the "network" will become completely centralized and the fees will thus be artificially high.

In reply to by Captain Nemo d…

lester1 Yellow_Snow Tue, 07/24/2018 - 08:10 Permalink

And then back down to zero where this ponzi scheme belongs!

 

When you have the Wolf of Wall Street, and Bernie Madoff both calling Bitcoin a ponzi scheme, what elese do you need to know?

 

​​​​​​Until then, by all means mortgage the house and put it all into Bitcoin. 🤣

In reply to by Yellow_Snow

sessinpo lester1 Tue, 07/24/2018 - 09:20 Permalink

lester1 SoilMyselfRotten Tue, 07/24/2018 - 08:46 Permalink

Umm.. Madoff would be the expert to consult when it comes to spotting Ponzi schemes.

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Lester1, you comment is absolutely ignorant and moronic and let me tell you why.

Madoff lied to his clients. He did not have an open ledger that his clients could see.

Bitcoin is just the opposite. The blockchain is an open ledger that prevents just exactly what Madoff did.

For goodness sake, educate yourself a little before you make such ridiculous posts.

In reply to by lester1

lookslikecraptome sessinpo Tue, 07/24/2018 - 11:12 Permalink

not necessarily. look at other articles on hedge and find out how much the term ponzi is used by other dudes on hedge in reference to the economy and the stock market, the NAS  the SP and all sorts of financial institutions.

If it is good enough there, it is good enough here. I do prefer the term MLM.

Here is ur problem, even with the run up and the momentum in December, no new wallets opened, and one crypto owner has several wallets many times. If new people were coming onto the market on fomo in December, the market would not have crashed. They were not coming in. hence the meltdown.

The problem for cryptos is mass adoption. Like buying tires yada yada yada.

In reply to by sessinpo

sessinpo lester1 Tue, 07/24/2018 - 09:35 Permalink

lester1 Michigander Tue, 07/24/2018 - 08:18 Permalink

So many of you greedy HODL'ers are going to get wiped out.

Seriously all it takes is one major hack, terrorist attack paid in Bitcoin, or an Amazon coin to come out and it's over for BTC.

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So by your logic, one major hack, a terrorist attack paid in fiat would be the end of the US dollar? lol

Try again lester. The more you post, the sillier you look. Every argument you make is faulty because you are ignorant.

In reply to by lester1

sessinpo lester1 Tue, 07/24/2018 - 09:16 Permalink

lester1 Yellow_Snow Tue, 07/24/2018 - 08:10 Permalink

And then back down to zero where this ponzi scheme belongs!

When you have the Wolf of Wall Street, and Bernie Madoff both calling Bitcoin a ponzi scheme, what elese do you need to know?

​​​​​​Until then, by all means mortgage the house and put it all into Bitcoin. 🤣

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When you start taking advice from Madoff and the wolf, you must be desperate. lol

Next, I suppose you'll be quoting Hillary Clinton on the ethics of politics.

In reply to by lester1