CNBC’s ‘Fast Money’ has continued with its near-daily coverage of the cryptocurrency market, suggesting that Bitcoin may have found a bottom.
Bitcoin Sees 15% Run Over the Weekend
Bitcoin had a monumental run over the past few days, moving up by 15% to the surprise of many. Altcoins quickly followed, with cryptos like EOS and Cardano actually outperforming Bitcoin, which lost market dominance in the process.
This move came to the surprise of many, as there didn’t seem to be a single piece of news or technical indicator that signaled this price jump.
However, CNBC’s ‘Fast Money‘ coverage of the cryptocurrency market on Monday hopes to bring a bit of light to the weekend’s run. Brian Kelly, CNBC’s foremost crypto trader, gave the Fast Money segment a statement regarding his opinions on why Bitcoin moved as it did.
Kelly pointed out three pieces of bullish news that could signal a Bitcoin move upwards.
Talk Of Institutional Investment Rages
Firstly, the trader mentioned the cryptocurrency service which the InterContinental Exchange (ICE) is working on. ICE, who owns the NYSE, is reportedly working on a cryptocurrency exchange, which will bring digital currencies to financial institutions.
If implemented successfully, this exchange would bring unprecedented levels of legitimacy to the cryptocurrency market, attracting billions of dollars in investment.
Secondly, Kelly pointed out that Fidelity, a traditional institution that has over $2.45 trillion worth of assets under management, is working on a custodial service. With a job offer stating that Fidelity is looking to provide “first-in-class custodian services for Bitcoin and other digital currencies.”
Fidelity’s move to become a cryptocurrency custodian comes amidst moves by other firms, like Circle, Blockchain, and Coinbase who offer services for institutional investors. But seeing an established financial institution like Fidelity move towards the cryptocurrency industry is positive nonetheless.
Last but not least, Kelly recognized that the regulatory environment around cryptocurrencies has become clearer, restoring trust in this growing asset class. Although he did not point out a specific example, it is likely that he is referring to the U.S. Securities and Exchange Commission’s (SEC) clarification about Ethereum’s status as a security.
Earlier last month, the SEC stated that ETH is not a security, triggering talk about a potential for Ethereum futures.
Although this isn’t the be-all and end-all of cryptocurrency regulatory announcements, this clarification was well-received by the cryptocurrency community regardless. As a result, Ethereum quickly jumped by over 10%, bringing some levels of faith back into this often shaky market.
Bitcoin Test Yearly Lows, Bounces Instead of Breaking Down
Last Friday was a precarious day for the cryptocurrency market, as Bitcoin and other crypto assets tested a yearly low that was set when Bitcoin dropped as far as $5,755 in the week prior.
Analysts believed that if Bitcoin’s price fell further it would continue to decline. Ran Neu Ner, the founder of OnChain Capital, called $5,350 as the next stop for Bitcoin, expecting for the continuation of a bearish trend.
However, late Friday night, the cryptocurrency market saw an influx of volume, quickly bringing prices away from the yearly low. As mentioned earlier, the cryptocurrency market continued on this mini-run, resulting in 15% gains within three days.
Many in the industry hope that this bullish sentiment can continue, as the first half of 2018, seen as a ‘crypto winter’ by some, draws to a close.
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