The leading digital currency Bitcoin rallied 1.65 percent in the last 24 hours to settle at a price of just above $5,300 as of 6:15 p.m. ET.
Bitcoin touched past the $5,000 earlier this month, hitting its highest level since November with analysts citing investor interest after it went above the $4,200 price mark. Bitcoin, the largest cryptocurrency based on market size, is up almost 34 percent within the past month.
It was languishing in the $3,000 price range for the last few months before making its move higher. As the prospects of a Bitcoin exchange-traded fund (ETF) are looming, it could be more closely-watched given its latest price increase.
A recent Bitwise report peeled back the layers of Bitcoin trading and found that most bitcoin trading is faked by unregulated exchanges–a red mark on a cryptocurrency industry that is trying to obtain some legitimacy, especially on Wall Street where digital currency-based exchange-traded funds are pending with the Securities Exchange Commission (SEC). However, the story could be slanted in favor of digital currencies.
Per a story by the Wall Street Journal referencing the Bitwise report, “Nearly 95% of all reported trading in bitcoin is artificially created by unregulated exchanges, a new study concludes, raising fresh doubts about the nascent market following a steep decline in prices over the past year.”
On the other hand, Bitwise, a provider of index and cryptoasset funds, said it met with the SEC with regard to its application for a crypto-based ETF. On the surface, the report might cast more doubt on a cryptocurrency industry that is a lightning rod for manipulation, but it also shows regulators what is real and what isn’t in terms of cryptocurrency trading.
In essence, excluding the artificial trading will also highlight the real trading where an efficient market is actually taking place. This will certainly be an important point to highlight as the SEC is set to decide on the Bitwise Bitcoin ETF around mid-May.
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Bold Predictions Return
Bitcoin’s latest upward trajectory is once again drawing bold predictions from cypto bulls. This time, it’s veteran trader Peter Brandt who predicted that Bitcoin will reach $50,000 in two years’ time as a result of a parabolic bull market.
“I believe that charts reflect underlying supply and demand fundamentals and that’s how we have to look at it,” Brandt stated on Yahoo Finance YFi PM.
Of course, being that the cryptocurrencies in general have their fair share of critics, it was a given that this $50,000 prediction would have its skeptics.
“Peter Brandt’s assessment is purely based on technical indicators and market history,” noted Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital.
“While technical analysis has a place in all markets, past performance is no guarantee for future results,” DiPasquale stated.
Nonetheless, DiPasquale didn’t entirely dismiss the notion that Bitcoin is on the move higher.
“Meanwhile, however, the current rally is consolidating nicely and we can expect further price appreciation if the trend continues,” added DiPasquale.
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