At What Level Do Institutional Buyers Join The Bitcoin Rally?
Story by: Naeem Aslam
Bitcoin bulls are losing control again and the bitcoin price is back where the rally took off. The rally started on July 13, when the price formed a low of 6081 and there were some serious concerns that the price could break below the $6,000 mark. The bitcoin price started to consolidate from July 19 to July 23 and traded in a range of $7,236 to $7,780. It was on July 25 that the bitcoin price reached a high of $8,480, making investors confident about the possibility of touching $10,000. However, the price retraced from this level and we are back in the consolidation range mentioned above.
As bitcoins skyrocket to more than $12 000 for one BTC, many central banks as ECB or US Federal Reserve warn of risks of a bubble. Britain and the ECB want to monitor trade for money-laudering suspicions. The main U.S. derivatives regulator said it would allow CME Group Inc (CME.O) and CBOE Global Markets Inc (CBOE.O) to list Bitcoin futures contracts. Toulouse. December 6th 2017. (Photo by Alain Pitton/NurPhoto via Getty Images)
It is very well known that the recent surge in its price was mainly due to the following reasons, and I have mentioned this here:
- Institutional investors coming on board
- Bitcoin ETF coming soon
- Bulls are back in town
However, the request for the Bitcoin ETF, which was backed by Tyler and Cameron Winklevoss, was rejected by the U.S. Securities and Exchange Commission. Many have said that the reason it was rejected by the SEC was because the department is still skeptical about the cryptocurrency market. The reality is that the SEC is only skeptical about the ETF structure presented by Winklevoss. The department is still in a process of considering several other applications for crypto ETFs and the fact is that bitcoin futures are trading on two exchanges. Therefore, it is nearly impossible that we will not see Bitcoin ETF approved by the SEC.
Speaking of bulls, here is something which needs attention. Firstly, bitcoin volatility has started to spike. This could attract speculators who breathe on higher volatility. The 30-day volatility formed a bottom back in May 2018.
Original story: https://tinyurl.com/y9r3yoqh
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