In an exclusive commentary to Ethereum World News, Matthew Newton, a market analyst at eToro shared his thoughts with regards to the current Bitcoin (BTC) surge in the crypto markets that has left many traders excited as well as skeptical as to whether it is the real deal.
We’ve seen a flurry of positive announcements this week, including a nod from the FSB and a big-pocket investor like BlackRock. After a few weeks in the doldrums, news like this goes a long way in lending legitimacy to crypto as an asset class, which is powerful over the long-term.
However, good news is not as influential as bad in a bear market. The market was quietening down over the last week, which is typical around market bottoms when investors lose interest and focus on other things. A great technical setup yesterday may also have helped spur prices forward.
Mr. Newton further cautioned traders that there is a slight possibility that the current Bitcoin (BTC) rally might be temporary:
Investors would be wise to remain cautious, as we saw a similar situation in April where some big short positions were squeezed causing the price to surge. That said, if bitcoin pushes past $8k, it’ll indicate that the bull is back and prices could continue to climb further.
It might take a few more weeks to confirm if the current Bitcoin trend is a bullish one, but one other Wallstreet firm has decided that the time is nigh for it to get into crypto investing. Goldman Sachs, through its new CEO, David Solomon, has indicated that it is already providing investment options to its clients that are derived from Bitcoin. In an interview with Bloomberg, David Solomon stated that:
We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too.
This then confirms the general crypto-market sentiment that the new money is slowly but surely trickling in from Wallstreet and other institutional investors. One needs to look at the current total crypto market capitalization that stands at $297 Billion at the moment of writing this. This figure has risen by over $40 Billion since Sunday, July 15th, and only 3 days ago.