Bitcoin is priced at $7,697 this morning after recovering from a sharp plunge to $7,399 on Sunday, wallet-holders are now hopeful for a return to $8,000 after an unexpected spate of positive headlines shifted the market sentiment in a year dominated so far by bad news.
BTC, the number one digital currency by market capitalisation, plunged 3 percent over the weekend after a sharp selling period dragged the market down.
However, the swift recover on Monday quickly added $300 following last week’s positive news from Blackrock, the world’s largest asset manager, and the Financial Stability Board (FSB) sent investors the the clearest signal yet that both institutional investors and regulators are set to bring cryptocurrencies closer to mainstream finance.
Following the recovery, Matthew Greenspan, senior market analyst at eToro tweeted this morning: “We might just be on the cusp of the largest Bitcoin bull run in history.”
On how the recent headlines have influenced Bitcoin’s price, Romal Almazo, Cryptocurrency Lead, Capco told Express.co.uk that tier 1 banks and financial institutions are exploring their options.
He said: “Blackrock really stands out to me as the arrival of institutional money will be a game changer. People need to remember that the crypto market is still less than 1 per cent of the daily volumes of the FX market.
“Any signs of the big players entering the market will cause huge waves. Though my personal belief is that we are still a few years away from reaching this tipping point, we are in what I would refer to as an exploratory phase when it comes to institutions and crypto.
“Right now, as Tier 1 banks and financial institutions explore their options, the two main things that are holding them back are the lack of regulatory oversight and the numerous risks associated with digital custody and storage. This will also mean a huge opportunity for insurers to get into the market and partner with digital custodians and digital storage providers.
“Before banks start investing in cryptocurrency, they will require a secure storage process with low settlement risk. We are still a long way off from providing the level of quality assurance institutions like Blackrock are accustomed to. Though expect this to change as the technology evolves.”
Last week Digital Currency Group’s Barry Silbert said that the bad times were over for Bitcoin and that the recovery is underway.
He said: “I think we’ve probably hit the bottom for the year. I actually put some money into Bitcoin last week.
CNBC report that Mr Silbert told the audience at the Delivering Alpha Conference in New York: “As an asset class it is here to stay. I’m 100 percent confident a decentralised, non-fiat form of money is here to stay.”