Bitcoin on the 5th May was trading at $5,800, what has caused it to surge by $1,500 to $7,300 in just one week?
In weekly gains not seen since the bull market of 2017, we take a look at the top reasons why it’s rocketing in price.
1. Bitcoin’s Golden Cross
A forerunner to this past week’s bull run was the “Golden Cross” – classified as when the 200 and 50 day moving averages cross, with the 50 day crossing above the 200 day, demonstrating a sustained change of direction for the markets. This happened on the 22nd April.
2. Fidelity Investments research indicates institutional money is coming
Fidelity, which hosts a digital assets division, ran a survey to find out how pensions, family offices, hedge funds, endowments and foundations feel about owning cryptocurrencies.
The survey found that 47 percent of institutional investors said digital assets are worth investing in, and the same percentage said they appreciate crypto for being innovative.
Just as important is the fact that 46 percent of respondents like the low correlation between cryptocurrencies and other asset classes. This proves that cryptocurrencies are the perfect hedge, and a good asset class to include in a diverse portfolio of investments. Does this mean institutional money is coming?
3. Facebook’s Project Libra and the Stablecoin
Recent reports say Facebook is actively recruiting allies to support its under-construction cryptocurrency-based payments system. Internally dubbed ‘Project Libra’, the blockchain-powered initiative will reportedly feature a U.S. dollar-collateralised stablecoin. Visa and Mastercard are rumoured to be supporting the initiative and the Wall Street Journal even suggests Facebook might reward users with fractions of the stablecoin in exchange for viewing advertisements or even by simply using the social platform.
Backing up this news was a softening of rules regarding crypto ads on Facebook. It doesn’t get much more mainstream than Facebook,…