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.

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Author: Tyler Durden