Sat. Aug 17th, 2019

Bitcoin Plays With USD 8,000, Crypto Market Cap Jumps 8%

Bitcoin Plays With USD 8,000, Crypto Market Cap Jumps 8% 101
Source: iStock/pepifoto

The most popular cryptocurrency, Bitcoin just took another USD 1,000 leg up this week and trades above USD 8,000 today, while the absolute majority of other coins out of the top 100 are in green, also (15:05 UTC.) (Updated on 15:12 UTC, to reflect price changes.)

After surpassing USD 8,250 earlier today, Bitcoin corrected lower, to USD 8,037, a level last seen in July 2018, and is still up by almost 8% in the past 24 hours. Also, Bitcoin dominance, or percentage of total market capitalization, increased to almost 59%. At pixel time, total crypto market capitalization is almost USD 240 billion.

BTC price chart:

Bitcoin Plays With USD 8,000, Crypto Market Cap Jumps 8% 102
Source: coinpaprika.com

Other major coins are also registering strong gains today: Ethereum is up by more than 6%, XRP rallied 28% and other tokens among the top 10 are up 2%-13%.

Top 10 coins by market capitalization:
(15:05 UTC)

Bitcoin Plays With USD 8,000, Crypto Market Cap Jumps 8% 103
Source: coinpaprika.com

“There are more than a dozen reasons why the crypto markets are surging lately, <…> but the ultimate reasons are nothing new and can be explained quite simply. Bitcoin has a strictly limited supply of 21 million coins that will ever be minted,” Mati Greenspan, senior market analyst at the eToro trading platform, said, adding that each time we get a wave of demand, there simply aren’t enough coins to go around, which pushes the price up at a rapid pace.

The analyst reminded that about 4 million of bitcoins have not yet been mined and another 4 million are estimated to be lost for good.

“So, the circulating supply at the moment is closer to 13 million coins. Of those, there are a lot of people who are simply not willing to sell at any price. So the liquidity of this market is incredibly thin,” Greenspan explained.

He also stressed that bull runs aren’t made in a single day and the market has been building up to this ever since the mid-December low. Moreover, the volumes have also been incredibly strong lately.

“As we know, bitcoin tends to go through some massive boom and bust cycles.<…> If the cycle repeats itself and we do see a 1,000% surge from the recent lows, that will bring the price up to USD 31,000. Given that crypto adoption is still in the very early stages, suddenly price predictions like USD 50,000 to USD 100,000 per coin don’t seem so incredibly insane,” the analyst said, stressing that this is still “an incredibly risky investment”.

“There’s even a fair chance that it will go from here straight to zero. Especially after a surge like we saw this weekend, I’d say that a minor retracement can probably even be expected,” he added.

Bitcoin Plays With USD 8,000, Crypto Market Cap Jumps 8% 104

Meanwhile, on Monday, a few bullish announcements broke the news:

  • A bunch of high-profile retailers now can accept payments in crypto.
  • Bakkt aims to list Bitcoin Futures in the coming months.
  • Bitfinex claims it raised USD 1 billion.
  • Microsoft announced they’ll be launching a new network atop the Bitcoin blockchain.

Moreover, CME Group said that CME Bitcoin futures reached an all-time high on May 13:

CME Bitcoin futures reached an all-time record high of 33.7K contracts on May 13 (168K equivalent bitcoin), up nearly 50% from the last record of 22.5K contracts on April 4. See how market participants are using $BTC to manage uncertainty: https://t.co/hDgraMj5pe pic.twitter.com/ct1xkjoJDF

— CMEGroup (@CMEGroup) May 13, 2019

Meanwhile, Jeff Dorman, Chief Investment Officer at Arca, a Los Angeles-based crypto investment management firm, said in a blog post that “We’re now in a period where all of the bad news is largely ignored and brushed off.”

“However, it’s important to keep some perspective. Even after this rally, the market is just now back to November 2018 levels. Bitcoin may have risen 100% in a few months, but it’s still -65% from [all-time highs] (meaning, a 100% rally barely makes a dent in the scheme of last year’s losses),” he stressed.

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Reactions:

Highlight: “Bitcoin is still highly speculative,” says @CoinSharesCo Chief Strategy Officer Meltem Demirors. “Much of the price volatility… has really waxed and waned.” But financial institutions are now integrating it into their legacy systems, she adds. Full interview: pic.twitter.com/smOyV3zXIA

— Yahoo Finance (@YahooFinance) May 13, 2019

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We’re now awaiting the on-chain volume to climb. On-chain volume is a proxy to longer term investor activity. That’s what I want to see for 100% confirmation.

Look for it after the price pulls back from it’s current exponential climb, as investors BTFD.https://t.co/M69Php4yph pic.twitter.com/1R9Eb4otJS

— Willy Woo (@woonomic) May 14, 2019

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the good thing about coming back to this price level…
we have appropriate memes in either direction

— I am Nomad (@IamNomad) May 14, 2019

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Someone just paid $100k per $LTC on Binance vs PAX (USD).

Guys, chill. pic.twitter.com/3TQhnEzgGY

— Su Zhu (@zhusu) May 14, 2019

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The last time Bitcoin broke $8,000:

Microsoft wasn’t building on it.

Congress wasn’t fighting it.

Bakkt wasn’t launching with it.

Square wasn’t selling it.

Fidelity wasn’t storing it.

TD Ameritrade wasn’t trading it.

Whole Foods wasn’t accepting it.

— The Rhythm Trader (@Rhythmtrader) May 13, 2019

N.B.: TD Ameritrade is not trading crypto yet, read more here.
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As mentioned a week ago, #BTC pricing was due to rip higher when futures traders flipped us into contango, which are tailwinds for bitcoin spot price (bullish).

The green areas are contango where red is backwardation. Played out perfectly. #crypto pic.twitter.com/3QSwD1asj9

— Joe McCann (@joemccann) May 13, 2019

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Yup. Bitcoin makes its annual performance in 10 days every year pic.twitter.com/2Q4fFlXcKP

— Thomas Lee (@fundstrat) May 14, 2019

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Bitcoin tops $8,000@APompliano makes the case to @kevinolearytv on why he is bullish on Bitcoin pic.twitter.com/irQHUybfC6

— Squawk Box (@SquawkCNBC) May 14, 2019