Bitcoin has jumped up by more than a third in value to more than $9,000 — $9,300 at the time of writing — for the first time since March, and is primed for another ‘price explosion,’ according to analysts.
This uptick could see the cryptocurrency’s value soar to even greater levels than experienced in 2017 when Bitcoin reached almost $20,000. This positive price forecast is related to market activity that has seen a huge increase in buy orders for Bitcoin — in fact, buy orders compose over 92% of market activity for the first time since March 2017, as noted by Cryptoslate.
“With so many buy orders placing pressure on the cryptocurrency market, a significant price shift is highly likely,” said the site — adding that a massive price surge is “inevitable.”
Regulatory Uncertainty Dissipating
Things have been somewhat shaky in the cryptosphere as of late, in part because of uncertainty surrounding cryptocurrency regulation across the globe. For example, reports of an inquiry into cryptocurrency exchanges like Gemini and Coinbase from New York Attorney General Eric Schneiderman put a bit of a temporary freeze on Bitcoin’s gains mid-month.
That said, analysts believe that the right kind of regulation could mean a boost for Bitcoin moving forward. This was hinted at by International Monetary Fund (IMF) chief Christine Lagarde, who said last week that Bitcoin and its underlying blockchain technology could transform the way people save and invest money.
“Innovations from the use of digital mechanisms need to be explored and encouraged… So it’s a combination of having a framework that protects, and not stifling innovation, that can lead to cost efficiency,” Lagarde said.
Lagarde’s optimistic comments preceded an upswing in the cryptocurrency markets which saw other major digital currencies mirroring, and in some cases exceeding, the recent gains of Bitcoin.
“Although there are ongoing regulatory concerns in key markets, they do seem to be dissipating,” Marques said. “If these concerns are addressed and there is even more positive movement related to regulation in these markets, there could be even more buying pressure to come.”
Bitcoin Bull Run
One thing to watch for is the cryptocurrency crossing the psychological barrier of $10,000, which will continue to boost Bitcoin’s momentum and could trigger a bull phase in the market.
“Bitcoin is up over 15% in the last seven days and there are clear signs that the bull run is back. Over the past few months, Bitcoin has lost nearly three quarters of its value but now investors are seeing a lot of value across the board and market caps are rising rapidly,” Oliver Isaacs, a blockchain and cryptocurrency adviser, told the Independent. “Bitcoin is well on its way to $10,000 and the volumes, buy orders and momentum oscillators all point towards this.”
This perspective is shared by others in the industry as well. According to Blue Line Futures President Bill Baruch who spoke with CNBC’s ‘Trading Nation,’ Bitcoin’s $10,000 level has represented strong resistance, but once that level is breached to the upside, Baruch sees the coin reaching $11,500.