If you have been in the cryptocurrency space long enough, you must have noticed that negative news often leads to a drop in the price of Bitcoin. However, this has not been the case recently. What could be some of the possible reasons why Bitcoin’s price keeps rising amid current setbacks within the industry?
This year has seen Bitcoin rise from under $4000 and now heading towards $7000. This current Bitcoin price increase is the highest in over 8 months and it is not just Bitcoin making the headlines, Ethereum and Litecoin are also leading in the current crypto bull market.
This has even seen top names within the cryptocurrency space, some who had given up hope on the return to a bull market in 2019 now look at Bitcoin’s price more optimistically.
Vinny Lingham who was sceptical on Bitcoin’s recovery now pledges to become a bull should Bitcoin hold at $6200 within the next 48 hours.
If Bitcoin can hold the $6200 level for the next 24-48 hours, then the bear market is officially over and I’m going to become a raging bull!
— Vinny Lingham (@VinnyLingham) May 10, 2019
It should be noted that this week alone, Bitcoin lost 42 million to hackers and looking back at history from the Mt Gox hack to that of Coincheck, Bitcoin’s price always took a huge blow after such negativity.
However, this news didn’t seem to have any effect on the price of Bitcoin. Why does Bitcoin’s price keep rising in spite of all this? Is the market now mature enough to resist such negativity?
Some reasons why Bitcoin’s price keeps rising
Fidelity buying and selling Bitcoin
One of the well-respected names in Wall Street, Fidelity announced this week that it will start buying and selling Bitcoin in the weeks ahead. What does this mean for Bitcoin and cryptocurrencies? This means institution more money will be entering the industry.
Fidelity will begin helping institutional clients buy and sell Bitcoin in the coming weeks.
Eventually every financial services company will do this.
If Bitcoin achieved $100+ billion market cap without institutional interest, imagine what happens when the smart money joins.
— Pomp ? (@APompliano) May 6, 2019
Bitcoin has had over $100 B in market cap with little to no institution money coming to the space. Imagine when wall street finally comes in.
This news has led to many cashing in to be in a better situation in terms of gains when this happens.
The launching of a possible Facebook coin
A possible cryptocurrency by Facebook has been on the News recently though many within the cryptocurrency space are not liking the idea given Facebook’s track record of centralization and abuse of privacy.
Nevertheless, this news is generating some interest both within and outside the crypto space. Those who are not sure whether to touch cryptocurrencies are now having a second thought.
Given the reputation of Facebook, we can expect to see more interest in cryptocurrencies in the months ahead should they release a coin.
ETFs have also been one of the most anticipated breakthroughs within the crypto sphere. Last year, the SEC rejected some applications and others were postponed to this year.
However, more Crypto ETF applications are being filed in with the most recent being that from Crescent Crypto Index Services LLC, a subsidiary of the Crescent Crypto Asset Management LLC.
The company aims to have Bitcoin and Ethereum in its USCF Crescent Crypto Index Fund (XBET) supported by the US Commodity Funds LLC.
Elon Musk’s interest in cryptocurrencies
One of the biggest names within the tech space, Elon Musk also brought in much attention to cryptocurrencies lately. The tech guru who earlier this year, hyped Dogecoin stating it is one of his best cryptocurrencies later had himself educated by Vitalik on the Ethereum blockchain.
The tech giant with millions of Twitter followers after changing his bio to former CEO of Dogecoin tweeted a few weeks ago “Ethereum”
What should be developed on Ethereum?
— Elon Musk (@elonmusk) April 30, 2019
While this didn’t cause a huge change in the price of Ethereum, it without a doubt brought more publicity and legitimacy to cryptocurrencies.
You might want to get more information on;
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- New Cryptocurrency ETF filed to the SEC by Crescent Crypto