The current trading week has shown optimism in the cryptocurrency market. Bitcoin showed an increase of more than 10%, and trading volume rose to the values of May 2018. Other cryptocurrencies from the top-10 capitalization chart (Coinmarketcap) showed almost 20% growth. The level of capitalization of the market of digital currencies has added up to $10 billion and currently stays around $134 billion. With certainty, we can say that the confidence in tokens has returned, but is it for long? Let’s figure it out!
The technical picture of “digital gold” indicates readiness to reach the critical level of last year’s December. The mark is around $4,400 and currently serves as a promising target. Since the breakdown of this level will be a new point of reference in favor of a wave of speculative interest to buy. “Bullish moods” will only increase – and the cherished marks of $5,800 is not far off when mining is already becoming profitable for many mining companies.
Obviously, the risks of corrective movement remain, because the cherished mark of $4,400 is still far away. Additionally, we must consider that Bitcoin is below the downtrend line. Therefore, the main coin, despite the growth in the volume of trading, is still under pressure.
SEC and JPMorgan growth accelerators
Meanwhile, the news background is increasingly encouraging investors to buy cheap cryptocurrencies. Practically, the growth engine is the investors’ expectation that the US Stock Market Regulator (SEC) will approve the traded exchange-traded funds (ETF) for Bitcoin. However, many experts say – this day is not far off. It is known that some states partially legalized cryptocurrencies and mining, which is about protecting investors. In addition, the risks of a new wave of the financial crisis are only increasing in the background of growing global debt. Therefore, some large investment funds are interested in alternative investments in order to diversify (distribute) long-term deposits. Therefore, investments in blockchain technologies and cryptocurrencies are seen as highly demanded.
It is also known that half of the SEC council members are positively set up for cryptocurrency funds. But as always, the regulator keeps the intrigue and does not give exact dates for ETF approval.
The next growth accelerator of popular coins is an unexpected message from JPMorgan. An ardent opponent of cryptocurrency who constantly talked about the uselessness of Bitcoin now intends to emit its coins. It is a JPM Coin coin for corporate customer transactions. It is known that decisions on the blockchain reduce the costs of the banking system. Some Japanese giant banks have already shown successful cooperation with Ripple, and intend to further support this distributed network.
As we can see, more and more financial institutions want to keep up with the times. The JPMorgan’s closed development already says a lot.
eToro predicts interest
And finally, the new generation chooses not only Pepsi but also trade in crypto exchanges. A study from eToro, a large trading company, showed that many young traders prefer to trade in cryptocurrencies. As you may know, the progress does not stand still, and the generation of millennials has perceived the trend of cryptocurrency as a tribute. At the same time, according to eToro, there is a great interest in coin trading among traders if traditional institutions would give such an opportunity. It is known that the cryptocurrency market is still unregulated and crypto exchanges are not sufficiently protected from hacking. Therefore, a “mass trader” who does not want to take risks while holding a waiting position when the crypto-trade industry gets on its feet.