3 Reasons Why Bitcoin and Its Brethren Are Back

Have you heard? Bitcoin is back — and with it, altcoins have been surging. But what’s driving the renewed bullish sentiment?

The Storm is Over

As of Wednesday morning, things are looking healthy in the greater cryptocurrency market.

At the time of this writing, Bitcoin is currently holding above the $9000 level, while the majority of altcoins — which all enjoyed significant run-ups over the past couple of weeks — are finally experiencing a much-needed and healthy correction.

So, what’s driving the renewed faith in Bitcoin and its trail of followers? According to experts, there are actually a few reasons.

1. Regulatory Clarity

First and foremost, increased regulatory clarity around the world is helping encourage big-money, institutional investors to get involved in the space. Fran Strajnar, CEO of Brave New Coin, explained to Forbes:

Bitcoin is trading upwards for a number of reasons. The U.S. is stepping in to regulate security tokens instead of commodity assets (utility) and we are seeing major value investors stepping into buy as a result […] As the Soros’ and the Rockefellers’ of the world move into this ecosystem, this asset class is legitimized and trending in an extremely positive direction.

Earlier this month, Bitcoinist reported that Soros Fund Management’s Adam Fisher has received internal approval to trade digital currencies — which has since sparked Bitcoin’s full-blown recovery.

3 Reasons Why Bitcoin and Its Brethren Are Back

2. Institutional Investors Are Getting Involved

Institutional interest in Bitcoin and other cryptocurrencies has also been encouraging other, smaller investors to get involved — before it’s too late. Explained Eiland Glover, CEO of blockchain platform Kowala:

Word is getting out that traditional financial industry players are preparing to enter the crypto trading markets soon. The entrance (of new financial firms) promises to provide much higher levels of liquidity along with a tsunami of new money…driving today’s prices higher.

Indeed, the herd is coming. A survey by Canadian multinational mass media and information firm Thomson Reuters found that 20 percent of its more than 400 clients are considering making a concerted push into the cryptocurrency market within the next half year.

3. The Market is Maturing

Perhaps most importantly, however, is the fact that the cryptocurrency market is maturing — and with it, investors are starting to gain a better understanding of where we are currently, and where we are headed. Rob Viglione, co-founder of ZenCash, told Forbes:

This 50-day high is a solid indicator that people are slowly re-entering the market. Increased regulatory scrutiny globally has weighed down on crypto prices over the last quarter, but the space has remained relatively stable over the last several weeks. People are starting to gain a more nuanced understanding of the long-term potential of blockchain technology. It also helps that major investors are becoming more bullish…that bolsters the confidence of the retail investor.

Of course, what goes up must come down, and green candles are often followed by red candles. However, the signals are clear. With increased regulation, institutional investment, and a greater understanding of what is at stake, all signs point to an impending bull run. Are you ready?

What’s your take on the current state of the Bitcoin and cryptocurrency market? Do you think Bitcoin is officially back? Let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist archives.

25.04.2018 / 22:40 46
Crypto Markets Hit 6 Week High at $400 Billion Crypto Markets Hit 6 Week High at $400
The bullish momentum has continued throughout the day and total market capacity has topped $400 billion as we start another week in crypto land. This
Asian Cryptocurrency Trading Roundup: Top Altcoin is Ripple Asian Cryptocurrency Trading Roundup:
FOMO Moments Crypto markets are performing well once again and have broken through the previous high from the last rally indicating a return to
Asian Cryptocurrency Trading Roundup: Top Altcoin is Stellar Lumens Asian Cryptocurrency Trading Roundup:
FOMO Moments The market correction has begun. Hopes that tax day in the US would induce more bullish momentum have faded and buying pressure has
Asian Cryptocurrency Trading Roundup: Top Altcoin is Iota Asian Cryptocurrency Trading Roundup:
FOMO Moments Many were expecting markets to correct this weekend following a couple of days of solid gains across the board. The good news is that
Asian Cryptocurrency Trading Roundup: Top is Altcoin Ontology Asian Cryptocurrency Trading Roundup:
FOMO Moments Crypto markets have stabilized a little over the past day or two and there is more green than red on the board during this mornings
Data Reveals the Reasons Behind Bitcoin’s Big Dip Data Reveals the Reasons Behind
As everyone knows, bitcoin has dropped roughly three-fold from its December peak. At the height of the mania it touched $20,000 but has since fallen
Comments (0)
Add a comment
Comment on