The current bullish levels of Bitcoin (BTC) at above $9,200 have been noted as being the highest in 40 days. This is according to data from CoinDesk’s Bitcoin Price Index (BPI). Checking coinmarketcap.com, and in particular, the total market capitalization, we find that this value has almost doubled since the early April levels of $250 Billion. Current total market cap levels stand at $418.8 Billion and show no signs of slowing down.
The last time the marketcap was at the $418 Billion mark, was back in early March this year. Bitcoin (BTC) was valued at around $10,000. Ethereum (ETH) was around $840 and Ripple (XRP) trading at around $0.88 and close to the same levels of today. Looking at today’s prices, these top 3 coins are valued as follows: BTC – $9,262; ETH – $682; and XRP – $0.91.
So what could be causing the current and sudden market resurgence?
Firstly, more and more traditional investors are turning to cryptocurrencies as alternative forms of investing. The known cases have been self evident over the past few weeks with the Soros Fund Management firm getting the go ahead by George Soros, to invest in crypto. The Rockefeller arm of investing, VenRock, has also partnered with crypto startup, CoinFund. They aim to collaborate in more blockchain ventures.
Now, news reaching Ethereum World News indicate that more American states are embracing cryptocurrencies and blockchain technologies. There is currently a bill in the Californian Senate to legally recognize blockchain technologies. California wants to allow companies registered in its state, to store data, including information about stockholders, on a blockchain.
There is an old African proverb that says, Where there is smoke, there is a fire. When the American States start passing bills about blockchain, it is only a matter of time before cryptocurrencies slowly sip into their economies. The current mayor of Lousiana City has even recommended an ICO to solve the financial woes of the city.
Japan has also recently flirted with the idea of restoring confidence in the crypto-markets by adopting self-imposed rules. 16 exchanges that are currently registered with Japan’s Financial Services Agency (FSA) have launched a self-regulatory organization dubbed the Japanese Cryptocurrency Exchange Association.
It seems like regulators are warming up to the concept of Cryptocurrencies and blockchain technology.
We can use the famous Buddhist analogy to explain their current 180 degree turn on crypto and blockchain. This Buddhist analogy is the famous one about emptying your tea cup before you add some more. It means that for you to accept new ideas, you have to first empty your mind of the old ones in a manner similar to pouring out tea. This is what is happening.
Where there is smoke, there is fire! But in this case, the fire is good for cryptocurrency markets.