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Bitcoin marketcap rockets past $100 billion: will $6,400 confirm bull market?

Bitcoin marketcap rockets past $100 billion: will $6,400 confirm bull market?

In the past 24 hours, the bitcoin price spiked from around $5,374 to $5,778 on regulated fiat crypto exchanges like Coinbase in the U.S., surging past $5,800 in several other markets.

The 5 percent upside movement of bitcoin led the market capitalization of the dominant crypto asset to surpass the monumental $100 billion mark.

Although the bitcoin price remains down by about 72 percent from its all-time high achieved in January 2018, according to global markets analyst Alex Krüger, a potential move past $6,400 would signal the beginning of a bull market.

The case for a Bitcoin Bull Market in 2019

In recent months, after recording a gain of over 50 percent year-to-date, the sentiment around bitcoin and the rest of the crypto market has noticeably improved, as shown in the newly released research paper of Fidelity Digital Assets.

This week, Fidelity Digital Assets, a subsidiary of Fidelity, the fourth largest asset manager in the world with $2.46 trillion in assets under management, said that 22 percent of institutional investors the firm surveyed already have invested in the crypto market in some ways.

The firm said:

“According to the survey, about 22% of institutional investors already have some exposure to digital assets, with most investments having been made within the past three years. Four in ten respondents say they are open to future investments in digital assets over the next five years.”

Based on its findings, Fidelity Digital Assets said that it expects the inflow of institutional capital into the crypto market to increase over the next five years.

The research of Fidelity comes after prominent investors in the crypto market in the likes of Ari Paul said that they may have been too optimistic about the rate in which institutions would enter the crypto market in the medium-term.

Ari Paul, the co-founder and CIO of Blocktower Capital, for instance, said in February:

“I’ve been too optimistic about the pace of institutional adoption in the past. It’s coming, but I can’t estimate which quarter (Whether that’s this year or 2022) that we’ll see a big spike. As a humble guess, something like q3 2019.”

While other factors apart from institutional interest could affect the short to medium term trend of bitcoin, if the asset moves past $6,400, Krüger noted that it would allow the market to overcome its 16-month bear market and mark the start to a new bull market.

Krüger said:

“BTC now at $5,750, the 2018 low prior to the November crash. – The 2018 bear trend ended once above $4,200. – Above $6,400, 2018’s most traded price, it’s a bull market.”

The rise in the interest towards bitcoin in the past several days has led the real volume of the asset to climb above $1 billion, based on the data provided by OpenMarketCap. Currently, the “trusted” volume of bitcoin is estimated to hover at around $1.5 billion.

$6,000 Seems to be the Crucial Point

Throughout the past month, other investors such as Multicoin Capital general partner Vinny Lingham have similarly pointed the low $6,000 region as a key resistance level for bitcoin to overcome. Lingham said:

“That said, if we can break $6200 for BTC, it will likely mark the start of another major bull run and could run hot and high, but if it’s pure speculation and other assets benefit disproportionately to value created, it’s likely not going to end well again.”

But, some traders still remain cautious on the short-term outlook of bitcoin due to the ongoing iFinex scandal, a case in which the office of the New York Attorney General Letitia James alleged Bitfinex of misusing $900 million of Tether’s cash reserve to hide an $850 million loss it recorded.

Bitcoin | BTC

Updated: May 19 at 3:55 am PDT
$8,091.91
10.7%

Bitcoin, currently ranked #1 by market cap, is up 10.7% over the past 24 hours. BTC has a market cap of $143.3B with a 24 hour volume of $23.76B.

Chart by CryptoCompare

Bitcoin is up 10.7% over the past 24 hours.

Filed Under: Analysis, Bitcoin, Price Watch
Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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