Bitcoin and Ethereum followed by the other coins had a sudden rally over the past 7 days.
Bitcoin is up by 10% and Ethereum is up by 22%.
That is surely good news for the crypto investors who still hold cryptocurrency after a long and painful bear market.
What’s more, there are two or three signs that the rally might be feasible. One of them is that there is a rally in all the other cryptocurrencies. Just 7 in 100 top cryptocurrencies declined in the last 7 days.
This is seen by technicals as confirmation that the rally has strength. It is also a signal that new fiat is streaming into the whole market and it is not just old money rotating from coin to another coin.
“Interestingly, it appears that the momentum behind the recent Bitcoin rise comes more from fiat and stable coins than from other cryptocurrencies,” adding more Michael Noel, CEO Blockchain Consultants says. “This move from Fiat currencies shows at least some consensus that BTC value, is better long term than in traditional currencies.”
Bitcoin and cryptocurrency becoming more acceptable by big players
Adding to the technical aspects of this rally there is also increased interest in blockchain projects, as per Noel. Like a partnership among Mastercard and Stellar, a Western Union and Ripple venture, and the launch of a NASDAQ Bitcoin index. Not forgetting to mention Bakkt and Fidelity that aim to bring big players in the cryptocurrency game.
According to Jeff Ramson, Founder, and CEO of PCG Advisory, Inc, there is also a growing acceptance of bitcoin from institutional investors saying:
“Each day we are hearing of more well-known fiduciaries, banks, funds, etc. investing into crypto/blockchain infrastructure, and I believe Bitcoin is the proxy for most who want to have exposure to the crypto asset class, while these markets develop,”
An example that confirms this theory is that JP Morgan announced the launch of its own cryptocurrency.
“While not significant to the price of Bitcoin, in reality, this also has given additional credibility to the space, which is helping with the price of Bitcoin; and I believe, this acceptance will help sustain the crypto asset class for the long run,” says Ramson.
Another indicator is the increased volume at Local Bitcoins which is 4 times higher.
Given that Bitcoin breaks two key levels, $4200, and $4800, we might see a FOMO forming pushing the prices higher.