Bitcoin has finally crested the $7,000 mark following weeks of a bear market. The industry as a whole has also seen a positive rally in price.
Bitcoin Breaks Past $7,000 Again, More to Come?
The U.S. Securities and Exchange Commission (SEC) denied nine Bitcoin ETFs last week. However, despite this, it doesn’t appear to have had much impact on the crypto’s value.
So much so, that yesterday, Bitcoin’s price soared over the psychological level of $7,000. For most of August, it has been hovering within the $6,000 bracket. Back in July, it rose to over $8,000 for the first time in months. This was following news that the SEC was thinking of approving the first Bitcoin ETF.
Momentum indicators suggest that this latest rally has a further run to make. In addition to posting a 50-day moving average, according to Bloomberg, it suggests that the Divergence Analysis Inc.’s (DVAN) Buying and Selling Pressure Indicator is moving higher.
Fellow crypto assets Ethereum, XRP, Bitcoin Cash, EOS, Stellar, and Litecoin has also seen positive runs.
While Bitcoin’s price remains far from its mid-December value of nearly $20,000, it is still trading higher than this time last year. In August 2017, it was valued at over $4,600, according to CoinMarketCap. At the time of writing, it is trading at $7,081.
News of this comes on the reports that Morgan Creek, an investment firm, is rolling out a cryptocurrency index fund. Along with Bitwise Asset Management, they have created the Digital Asset Index Fund. The aim is to give institutional investors exposure to a broad range of crypto assets.
The combined market cap is now worth over $213 billion.
Dollar Down, Bitcoin Up
The rally in Bitcoin’s price could also have something to do with the U.S. dollar.
In a report from MarketWatch, the rally comes at a time when the U.S. dollar is going through a period of weakness. As a result, people are turning their attention to Bitcoin. Mati Greenspan, senior market analyst at eToro, says:
This kind of behavior is typical of commodities. As the buck falls, it takes more dollars to buy a barrel of oil or an ounce of gold and vice versa. My suspicion here is that as the dollar dominates the markets, people are placing more faith in it over bitcoin and of course, vice versa, when the dollar falls.
Do you think the market will continue its bull run? Let us know in the comments below.
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