Bitcoin has broken above $4,000, rising 8.6% in the past 24 hours on volume of $6.2 billion. The move confirms, for now, support at $3,500.
All the top alts are following bitcoin higher.
Bitcoin SV, which was almost 50% higher on the past week, is the only coin in the red, but only just. It is down 2.7% at $97, while Bitcoin Cash trades at $183. Forty-seventh-placed cryptoasset Verge is 25% higher at $0.0067.
Encouragingly for bulls, the shift higher comes despite SEC Chairman Jay Clayton pouring cold water on bitcoin exchange traded fund hopes.
On the technicals, the double bottom seen in the chart below is usually indicative of a change in direction, and so far it is to the upside.
As we been saying for a while, the chances of a bitcoin ETF anytime soon are pretty close to zero. Clayton confirmed as much at this week’s Consensus Invest conference organised by CoinDesk.
Custody is a big issue, but so too is market manipulation, real or imagined.
On the latter, Clayton, who emphasised he was speaking in a personal capacity, said in an interview at the conference:
“How that [manipulation] issue gets addressed, I don’t have a particular path. But it needs to be addressed.” He continued:
“The prices retail investors are seeing are the prices they should rely on, and free from manipulation – not free from volatility, but free from manipulation.”
Bloomberg has the specific comments:
“What investors expect is that the trading in that commodity that’s underlying the ETF is trading that makes sense, is free from the risk or significant risk of manipulation,” Clayton said. “Those kinds of safeguards don’t exist in many of the markets where digital currencies trade.”
And this morning we discover that Goldman Sachs is having a fair bit of trouble solving crypto’s custody problem. The reasons aren’t technical but legal due to the lack of clarity in “legacy” regulations.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane