During the last 2 weeks in crypto-currencies had impressive positive price movements, and reached a total market capitalization of more than $400 billion USD. Bitcoin’s price recovered, and after it had spent some time under the $7,000 USD Level, it reached Wednesday morning, a new local High of $9,760 K USD. Since then, it has been corrected, however, and the price is currently at $8.840 USD.
Reasons for the price increase
A few days ago, a Thomas Reuters survey found that every Fifth financial institution currencies the trading of Crypto is considering. The survey was conducted among more than 400 customers in all trading companies with which Thomson Reuters operates, including Eikon, REDI, and various FX platforms. About 20% of the participants indicated that they consider, to act in the next 3-12 months with crypto-currency.
Adding to that, Reports by CNBC, according to Goldman Sachs currency, a Crypto-trader has set. This is a Follow-up to the announcement of the Wall Street banking giants in January, revealed that they are currencies in an early stage of the establishment of a trade centre for Bitcoin and other Crypto. Justin Schmidt, a former trader, was Goldman Sachs first recruit, and the Digital-Asset-markets in the securities and will direct the Department of Goldman.
Schmidt began his role on 16. April.
Joe DiPasquale, CEO of BitBull Capital, these factors have brought the market sentiment in the positive, which reflected the rising prices quickly.
Bitcoin encounters resistance at $10,000 USD
Bitcoins price has increased since last week steadily and has risen by almost $ 3,000, but failed to reach the 10,000 Dollar mark. At the last Moment it Stalled and fell about 1000 dollars, to a Low of $8.700 USD. At the moment it looks as if the $8.800-Level holds the price.
The volatility of the Bitcoin price, as well as its wild price fluctuations raise concerns that Bitcoin is merely a speculative commodity. According to Bill Harris, former CEO of Intuit and founder of PayPal, and Personal Capital, seems to be the speculative aspect of Bitcoin is its practical transaction aspect to overshadow:
“In my opinion, it is a huge kollossales Pump-and-Dump scheme. In a Pump-and-Dump scheme, “pumps”, the project triggers the price of a security to which the speculative purchase orders, and then sell some of your stocks to artificially high prices.”