Bitcoin prices rose sharply today, climbing past $7,000 and rising to their highest since June as strong momentum drove gains.
The digital currency’s price hit $7,440.25 on the CoinDesk Bitcoin Price Index (BPI), up 11.7% gain from the daily low of $6,663.03.
By reaching this level, Bitcoin attained its highest price since June 10, and was up 28.6% from the recent low of $5,785.43, additional BPI figures show.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining today’s rally, analysts pointed to positive developments and the impact they had on the markets.
“I think we are starting to see a strong positive shift in sentiment,” said Oliver Isaacs, blockchain investor, advisor & influencer.
“Major recent positive news includes the CFA examination adding blockchain topics to its curriculum, a move that is most certainly going bring widespread knowledge and exposure of digital assets to Wall Street,” he stated.
“In addition, Coinbase, which is the largest exchange in the world has just been approved to list securities — representing significant progress in its bid to operate as an officially regulated crypto broker dealer,” added Isaacs.
“They are also exploring the addition of five major cryptocurrencies – again bringing positive gains to the market. Whether this is the start of a major bull run remains to be seen but I am hopeful.”
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, also spoke to progress in the space.
“There have been a series of positive developments in the crypto space this week, with David Solomon’s appointment as CEO of Goldman Sachs being the latest.”
“From events like Coinbase receiving approval to list security tokens or their recent announcement that they’ll expand their token selection, to BlackRock taking a formal look at crypto assets; the red carpet is continually being rolled out for institutions to enter the crypto asset management arena.”
“We are seeing increased attention [to] the Crypto Currencies Markets by the Main Stream Financial Institutions, either in the form of actual coins or the trading platforms,” stated Charles Thorngren, CEO of Noble Alternative Investments.
“As more institutions get positioned to take advantage of the market we will see great volume in the trading of the Crypto Market. When you tie that with the bargain pricing of Crypto’s it is not hard to see why we have the move we currently see.”
While Isaacs and Thorngren seemed optimistic about the recent developments, some analysts seemed a bit more skeptical about their impact on Bitcoin’s recent rally.
“Announcements by Goldman and BlackRock are wonderful developments for cryptocurrencies in general, but it is highly unlikely either firm will buy bitcoin outright,” stated James Song, founder and CEO of blockchain startup ExsulCoin.
“Instead, traders at these firms will likely seek asymmetric risk-return investments in derivative products based on cryptocurrencies, and are seeking the freedom to do that now, so they don’t lose out on any future investment opportunities.”
Jeff Koyen, CEO of 360 Blockchain USA, stated that the BlackRock announcement and the news that Solomon will become COO of Goldman Sachs were not “important enough alone to drive a sustained bull run on its own.”
“But together they prompted fresh coverage in mainstream outlets — and generally with a positive tone.”
“More institutions are coming on board, finally, and that we’ll see more of these headlines in the coming weeks.”
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.