According to the news report by Bloomberg, the most valuable as well as largest cryptocurrency in the world has turned itself around since the beginning of July, rallying almost 40% in that time and finally crossing the $8,000 mark.
According to some market experts, the reason for Bitcoin’s rally is – in part – because of the expectation that the US Securities and Exchange Commission (SEC) was going to make a decision about cryptocurrencies by August. This rally has also helped ease the massive plunge the Bitcoin saw from its December 2017 high of $20,000.
Market optimism about Bitcoin is high at the moment. Bitwise Asset Management is reported to have filed an application with the SEC so that it can offer its first publically traded cryptocurrency index fund. Bitwise plans to call that fund Bitwise HOLD 10 Cryptocurrency Index Fund.
Additionally, Van Eck Associates Corp. also replied to an SEC letter with regard to “fund innovation”. Earlier in June, another exchange had applied to the SEC for approval to list its own Bitcoin Exchange Traded Fund (ETF) from SolidX Partners Inc. and Van Eck. It seems that almost a dozen companies have filed applications for cryptocurrency products with the SEC, most of which have been rejected by the agency.
However, according to managing partner of Texas headquartered crypto hedge fund Multicoin Capital, Kyle Samani, all these rumors are unfounded. The SEC clearly gave its reasons for why each of those applications had been rejected and most of those issues listed by the regulator have not changed.
Despite the facts, optimism in the market for the world’s number one cryptocurrency remained high, with Bitcoin jumping up as much as 8.5% in trading yesterday. The last time the digital asset had crossed the $8k mark was back in May, about two months ago, however Bitcoin’s price is still 17% below its highest in May. And despite this week’s gains, the number one crypto still remains nearly 60% below its peak of $20k.
According to the CEO of cryptocurrency data-analysis company CoinFi, Timothy Tan, cryptocurrency levels have been depressed for the last 6 months, so the only way for them to go now is up. He also stated that while the timing of such things were difficult to predict, there was a possibility that this was the beginning of a bull run for the crypto market.
Optimism is also high because various regulators addressed the issue of rules within the cryptocurrency space over the last two months, but did not stunt the growth of the industry as a whole.
Another reason why prices started going up was because rumors abounded that BlackRock Inc., the largest asset manager in the world, was assessing investment possibilities in Bitcoin futures. These rumors went viral despite the fact that the Chairman of the company stated clearly that no customers had shown any interest in such a venture.
Another reason to keep prices up was that Bitmain, mining hardware maker, just finished yet another round of funding and reportedly raised between $300 million and $400 million and now has a valuation of $12 billion.
So far, Bitcoin has been able to hold on to its hard won gains this week, according to Cointelegraph, despite the fact that the altcoins have had a mixed bag of results. The cryptocurrency’s dominance of the market has also gone up to above the 46% mark.
According to VC firm Initialized Capital’s CEO and co-founder of Reddit Alexis Ohanian, Bitcoin is one of the most robust cryptocurrencies in the industry as it continues to gain in value over the long term.