After an all-time high in December at $20,000, the price of bitcoin has only fallen ever since. However, in the mid-morning hours of Tuesday, bitcoin yet again moved closer to the $10,000 mark by closing at $9,200 with an increase of $400.
Over the past few weeks, Altcoins or alternative currencies outside of the major currencies like bitcoin and Ethereum have continuously outperformed bitcoin in the market. Some of the best performing altcoins include ICON (ICX), Ethos (BQX), EOS, and Kyber Network (KNC). The market has added almost $200 million in cryptocurrency since early April but it still remains in a mid-term recovery phase. However in terms of volatility, bitcoin and Ethereum are still leading the market.
Investors have predicated a trend in the market based on the last two weeks; when the price of bitcoin goes up, the price of altcoins and other tokens tend to climb by bigger margins and when there is a fall in the price of bitcoin, altoins drop by larger percentages. Since, altcoins and tokens seem to be generally following bitcoin’s price trends, a bullish development in bitcoin will mostly likely lead to large gains for altcoin investors.
Fran Strajnar, the CEO of Brave New Coin, a data and research company that focuses on the cryptographic assets market says, “Bitcoin is trading upwards for a number of reasons.” According to Stajnar, the top two reasons why bitcoin is trending upwards are because of large investors and technological upgrades.
With the spotlight on the cryptocurrency market getting brighter each day, most of the large banking institutions are starting to wake up and take notice. A few examples of traditional players in the finance industry preparing to enter the crypto market are Goldman Sachs and Barclays.
In order to help clients navigate cryptocurrencies, Goldman Sachs has hired crypto trader Justin Schmidt as vice president of digital asset markets as a part of their securities division.
The British banking giant, Barclays is talking to clients in order to gauge whether there is enough demand amongst investors for them to launch a cryptocurrency trading desk.
RealityShares, a Blockchain ETF firm in San Diego is currently working on creating their own cryptocurrency exchange.
With an increasing number of individual investors, start-ups and large organizations beginning to acknowledge the rising impact of bitcoin on the economy, it won’t be long before bitcoin rises above the $10,000 mark and continues to grow in market value.