Bitcoin Crosses $4,000 Following Sharp and Sudden Rally
Bitcoin’s price advanced sharply in overnight trading on Monday, with the bulk of the gains occurring over a 30-minute stretch, signaling renewed momentum following a week of lackluster moves.
Big Move Higher
Bitcoin reached a session high of $4,103.13 on Monday, according to CCN’s price tracker. The leading digital currency is currently valued at $4,032.39, having gained 4.5% over the past 24 hours.
Values fluctuated sharply on major exchanges, with BTC/USD trading hands in the low $4,000 region on Coinbase and Bittrex. On Bitfinex, bitcoin went for $4,106 at the time of writing.
Although sudden breakouts are not uncommon for bitcoin, the latest rally pushed prices above a key psychological hurdle ($4,000). The next major inflection point is located in the mid-$4,100 region; a break to the north would likely lead to a re-test of the pre-holiday swing high north of $4,300.
Bitcoin’s trading activity has picked up sharply in the last 24 hours, reaching a high of $5.7 billion, according to CoinMarketCap. Spot markets have seen a large influx in trading volume, as has Bitmex, the leading derivatives platform.
Other cryptocurrencies followed bitcoin higher at the start of the week, with the total market capitalization reaching a high of $138.5 billion. Bitcoin’s share of the overall market cap remains sturdy near 52%. Overall trade volumes, inclusive of bitcoin, altcoins and tokens, reached $17.6 billion on virtual currency exchanges.
Positive Sentiment Builds
While not everyone is convinced that bitcoin’s latest move represents a major trend reversal, the market is benefiting from renewed stability and improving investor confidence. Since bottoming near $3,100 last month, bitcoin has rebounded 30%.
2019 is shaping up to be a big year for digital assets. Not only is the market moving beyond the ICO boom (and subsequent bust), attention is shifting to institutional adoption, business innovation and increased regulatory oversight. Although not everyone is on board with these developments (bitcoin purists don’t want the asset securitized), movement in this general direction appears certain now.
The next major regulatory bellwether will be the SEC’s decision on the VanEck SolidX Bitcoin Trust. The U.S. securities agency is expected to deliver a verdict next month after delaying its ruling several times in 2018. At this stage, SEC approval seems unlikely given the ongoing concern over liquidity and market manipulation. That being said, VanEck strongly believes that a crypto fund will eventually be approved as the case for bitcoin continues to grow.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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