Bitcoin Tops $11K In Continued Rally, Ether Over The $300 Mark – Industry Reactionsbr>
The happy days are here again for bitcoin traders and HODLers, as the godfather coin continued its rapid appreciation. BTC has topped the $11k mark on enormous volume, and appears headed higher.
Meanwhile, ether is at $311 at mid-day and also has its own momentum building. Trading action seems concentrated on BTC and ETH at the moment, as the rest of the top ten were down slightly.
What’s driving the enormous increase in BTC? Institutional interest may be spurring retail investors, say some experts.
Herbert Sim, Head of Business Development, Broctagon
“For those involved in the crypto industry, this growth should come as no surprise.
“We’ve recently seen perfect market conditions for a rally, and it shows no sign of stopping. The recent Facebook Libra announcement, as well as the heightened demand for CME crypto futures, show that large institutions are realising the opportunity cost of not being involved in crypto, and dragging the market up with them.
“Conditions are also perfect for any nervous retail investors considering dipping their toes back into crypto investing. Firstly, the Bitcoin hash rate is at an all time high, making the digital currency more more secure than ever. Furthermore, passing the 10k mark will also trigger FOMO, meaning we could see a large scale re-entry to the market.
“If this trajectory continues, then 2019 could be a record-breaking year for bitcoin.”
Gavin Smith, CEO, Panxora
“The factors behind the bitcoin price rise are unlike any that we’ve previously seen in the industry.
“This is largely driven by a change in investor profile. Now that bitcoin is being adopted by more and more mainstream institutions, its price is naturally driven by more conventional factors.
“We are currently seeing a move towards all risk assets, with both gold and US stocks moving higher. This is due to the perception that the global central banks are entering an easing phase. While this has benefitted all risk assets, the combination of increased institutional involvement and easier credit prompting a move into risk assets means that bitcoin is getting a double whammy.”
Joseph Denne, CEO and Founder of blockchain technology and edge computing services company DADI :
“The bounce back in Bitcoin since May has had a positive effect on the whole market, with increased interest in blockchain projects helping to drive them forward. Participation in projects such as DADI help to grow the ecosystem, drive innovation and leads to a corresponding increase in value of many altcoins. In our case this means a growth in the Edge network we are building via increased capacity and increased usage.
“As we look to the back end of summer and Q4 we expect to see a significant rally in the value of altcoins, driven in the main by Bitcoin‘s appreciation, but underlined by the potential of the technologies being developed and deployed. The recent “crypto winter” has had the effect of shaking out a lot of the more dubious projects in the space, which has been of great benefit to the ecosystem as a whole. What is left is a more mature set of platforms, with technologies that can be activated and used today.”
George McDonaugh, CEO and Co-Founder of blockchain and cryptocurrency investment firm KR1:
“The bounce back of bitcoin as been fairly extraordinary. With it currently just shy of $10,000, having been at $3,200 not even 6 months ago, it’s clear that during the 54 week bear market money didn’t leave the asset behind, it just sat on the sidelines waiting to get back in. Think if it as a slow game of musical chairs and once the first player sat down the rest joined the crush to get a position.
“When we reach $10,000 the world will be hit with a slue of headlines and those that thought it was a passing fad will raise an eyebrow and log it mentally that its something they should look into. This is how the cycle continues and I expect prices to surge after this mental marker is reached.
“Bitcoin is a powerful beast, it forces you to question money, politics, value and profit. Many will decide, as thousands to everyday, to buy some and see what happens.
“Caution is however strongly advised. On the long way up to $20,000 there were five moments where there was a 40% decrease in price. These shake-outs test your staying power and many new entrants will hand their precious coins back to the market. We will see huge corrections again, and passing 10k may well be the catalyst that drives us back down, but whatever happens, we’ve been clearly shown that the interest, adoption and money has not in any way left this new asset class.”
Oliver Gale founder and CEO of basetwo.com:
“Bitcoin has a long term value proposition as a store of value in the trillions; far greater than where we are today. In the short term I see increased volatility (risk) in the traditional markets as one driver, global trade wars with China, increased Lightning Network and bitcoin transaction volume, and endorsement of blockchain technology with potentially massive awareness and access being made available to retail investors as some of the short term drivers of price.
“Do I think this parabolic move is going to continue? No, it will have to retrace to a support level and consolidate before a push higher, but expect the price to march onwards and upwards in 2019.