Bitcoin breaches $8,000 as volumes build

Bitcoin has breached $8,000 for the first time since 21 May 2018Bitcoin has breached $8,000 for the first time since 21 May 2018

Bitcoin touched $8,000 this morning (UTC) as the rally gathers pace, trading at its highest levels since May as it surges above its 100-day moving average.

With regulatory worries receding for now and positive news flow around adoption combining with bear exhaustion, the forward march seems set fair. The leading crypto is up 30% in the past month with BTC dominance now at 46.8.

Trading volumes are moving in the right direction too, now at $5.84 billion, according to coinmarketcap.

The solidity of the advance for bitcoin is also seen in the relative lack of volatility of the narrow trading ranges seen in the periods between its leaps higher, such as this past weekend.

Bitcoin chart shows solid consolidation

BTC is consolidating after every spurt in an encouraging pattern for the sustainability of the rally

BTC is consolidating after every advance in an encouraging pattern for the sustainability of the rally (Source: Trading View)

Chinese cities moving forward with blockchain, ETFs soon

Supporting the rally is news of a $1.5 billion fund being offered by one Chinese city, Nanjing, to attract developers to blockchain apps to make the city work better. That follows reports of asset manager BlackRock “exploring” the crypto asset sector and, separately, the rekindling of exchange traded fund hopes, with huge number of submissions to the SEC 90-day process that will decide on whether the latest bitcoin ETF proposal (from VanEck and SolidX)  should get the green light.

One report last week claimed on the basis of unnamed sources at the SEC that it was “nearly certain” to approve the ETF.

One source was quoted as saying it was likely to gain approval in September or soon thereafter: “I would expect a positive outcome in September – or if it gets strung out a little further it is simply a few ‘dotted i’s and crossed t’s’ are being finalized on larger regulatory language in the crypto space.”

FSB hands-off for now but to monitor crypto

The Financial Stability Board, a body which grew out of the G20, said in a report last week that crypto do not pose a material threat to the financial system. This was interpreted as good news by the markets. Chaired by Mark Carney, the governor of the Bank of England, the FSB thinks crypto as an asset is too small to be a risk but not so small that it won’t be monitoring its usage among banks and other financial institutions.

The second part of its announcement was interesting in that it hints at a perhaps wider presence of crypto – experimental or otherwise – at financial institutions than originally thought.

Bank of England adopts blockchain

Also on the adoption front, it doesn’t get much better than the Bank of England saying it is building blockchain tech into its revamped real-time gross settlement system (RTGS) which carries yearly transactions valued in total at around £500 billion.

The story for altcoins is improved on yesterday as they get pulled into the BTC slipstream.  Ethereum which has managed to climb from Monday session  lows at $450 to $470 and Zcash which is 7% the better at $215 .

Bitcoin Cash, Litecoin, Monero, Stellar and Zcash are pushing higher with most top alts starting to flash green.

About the Author

Pete Winston
I live and breathe crypto and have a small holding (BTC, ETH, EOS and XLM) that isn’t life-changing, so move along hackers! You can email me here: petewinston@coinintelnews.com

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