Crypto Review

Bitcoin’s skyrocket growth: The Wall Street sharks are in

Within two weeks of virtually non-stop growth, Bitcoin not only confidently hit $6,000 but also continued to strengthen after a short break to take profit at around $6,000. BTC grows by more than 3.5% and is trading at around $6,300 at the time of writing, and the daily trading volume returned above $18 billion, reflecting the high interest of buyers.

The BTC growth at the beginning of the week was feeding on the outflow of funds from altcoins, but on Friday most of the main altcoins already moved “to the green”. The current scenario is highly desirable for Bitcoin-Maximalists, who do not consider the existence of other cryptocurrencies necessary.

Bitcoin’s bullish momentum persists despite news of a successful hacker attack on the largest crypto exchange Binance, which resulted in 7,000 BTC stolen ($44 million at the current exchange rate), as well as the scandal around Bitfinex and Tether. According to The Block, for all the time, $1.35 billion worth of cryptocurrencies were stolen from major exchanges, a significant portion of these funds (about 59%) were stolen in 2018.

The Bitcoin price dynamic from the beginning of May resembles a parabola, showing sharper growth day by day. Rising prices are attracting public attention. The fear of a missed opportunity (many people remember the sharp rise in Bitcoin in 2017) activates retail buyers who have previously lost interest in the market. In the meantime, according to the statistics of the largest BTC wallets, on May 7 a large number of bitcoins were set in motion. In total, 21,500 BTC ($ 135 million) were withdrawn from cold wallets of Bittrex, Bitstamp and Bitfinex exchanges.

Against this background, that capital, which stood at the origins of the rally from $3,500, gradually leaves the market. After all, it is much easier to sell large volumes when there are many buyers in the market.

This is nothing more than our guesses, based on the behaviour of the stock market at the beginning of the last century. However, we see that up to the present moment, while large funds are generally avoiding investments in cryptocurrency, the behaviour patterns of the 100-year-old stock market and the cryptocurrency market now are very similar.

However, crypto enthusiasts have a big trump card in their sleeve. At the end of 2017, big business was clearly not going to “enter” the market at those high prices. Then we saw a large-scale correction with the achievement of historic lows, it is likely that many “Wall Street sharks” are already “on board”, since none of them has disputed the long-term outlook for the sector and the importance of the blockchain in general. In the case of receiving the “green light” from regulators to launch products for institutional investors in the coming months, we can get a new growth impulse.

The FxPro Analyst Team

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