Bitcoin Price Surges to $6,830, as Mainstream Adoption Continues
Bitcoin's bear snooze has nothing on the US Dollar. | Source: Shutterstock
Earlier today, the bitcoin price soared to over $6,830, achieving $6,905 at its peak, triggered by the increasing adoption of high profile investment firms and payment services providers.
Institutional Investors and Wall Street Are Ready to Invest in Bitcoin
This week, $95 billion hedge fund Man Group, announced that the company will invest in bitcoin and add the cryptocurrency to its diversified portfolio upon the launch of a bitcoin futures exchange by CME Group, the largest options exchange in the world.
At the 2017 Reuters Summit, Man Group CEO Luke Ellis stated that Man Group “will add bitcoin to its investment universe if CME launches futures contract as planned.”
CME Group and its chairman Leo Melamed revealed that the company will list bitcoin futures by the second week of December. As such, given that the minimum value of investments by multi-billion hedge funds is at around $300 to $500 million, by the end of 2017, billions of dollars will likely flow into the bitcoin market.
Over the past weekend, when billions of dollars in funds were reallocated from bitcoin to Bitcoin Cash by a few key figures within the cryptocurrency sector, the price of bitcoin plunged, creating a domino-like effect. A similar trend will likely emerge in an upward movement by the end of December, in which hundreds of millions of dollars in bitcoin investment by firms like Man Group would trigger individual investors to invest in bitcoin and the market.
More to that, as billions of dollars flow in the bitcoin space, the liquidity of the cryptocurrency will further increase, attracting more investors from the traditional finance sector and Wall Street. Given that some of the largest hedge funds in the US such as Fidelity have already invested in bitcoin, in the mid-term, latest by mid-2018, many of the large-scale hedge funds and investment firms would likely invest in bitcoin as a robust store of value and safe haven asset.
Where Does Price Go From Here?
Throughout this week, investors and analysts including Mike Novogratz have reaffirmed their short-term bitcoin price target at $10,000. If the entrance of several institutional investors and retail traders trigger other high profile investors and investment companies in the finance industry by the end of 2017, it is possible that the price of bitcoin can breach the $10,000 target within the next few months.
In the short-term however, an interim target of $7,000 seems more likely, given that many short-term momentum indicators including MACD demonstrate an increase in momentum in the price trend of bitcoin.
Within the past two days, the entire cryptocurrency market has stabilized, as the daily trading volumes of bitcoin and Bitcoin Cash declined from over $10 billion to $3.3 billion. The daily trading volume of Bitcoin Cash remains below $1.6 billion, merely 10 percent of the trading volume it had demonstrated on Sunday.
With the bitcoin exchange market finding stability and rapidly recovering, it is likely that the price of bitcoin will breach $7,000 in the next few days, and potentially move towards its current all-time high of $7,900.
Featured image from Shutterstock.
