The coin market is seeing some stability after the recent surge in the price of Bitcoin. Bitcoin on Tuesday rose to $6,700 from $6,150 after a few hours of sustained movement.
Even though the price retracted back to around $6,450, the pull back was expected. However, it has shown that the market bulls were still eager to contend.
Presently, the coin is valued at $6,616 and as would be anticipated, the recent movement has animated and enlivened the coin market.
Significant Increase in Trade Volume
In the past couple of days, the traded volume for Bitcoin has increased significantly. This has given a brighter outlook to the market unlike the past few weeks when trades and even spikes were not accompanied by significant increase in volume traded.
Data available from Coinmarketcap shows that the volume of Bitcoin traded in the past 24 hours has increased to $7 billion from $3 billion. This coincided with the surge in the coin price. Presently, it seems to have readjusted to $4.4 billion.
The latest surge in volume cut across most exchanges as shown from data from Shapeshift’s CoinCap. The recent price movement of Bitcoin will be confirmed a short-term rally if the breakout moves beyond the $6,800 resistance.
Long On Bitcoin
Market watchers are eagerly awaiting the confirmation of the trend. Speaking about the price movement, DonAlt an analyst stated,
“Closed at resistance. Might be getting a retrace today. I’m generally leaning bullish so I’m not shorting the way down, I’m waiting at support to re-long would love to get a daily close at the top of the green box,”
That must be the viewpoint of the bulls especially with a rally long expected. Bloomberg reported that known bull, Michael Novogratz has lent his voice once more to the future outlook of the coin market with the recent announcement by Fidelity Investments of its plans to launch a digital asset platform.
The Custody Impact On Big Investors
Novogratz was quoted as saying,
“One of the things that will get institutional investors involved in crypto is custody solutions… And Fidelity is coming out with a world-class custody solution that is aimed at institutions, so that’s a box that gets checked and [that is] something that gets taken [an institution’s] list.”
The recent fluctuations also brought to bear, concerns in some quarters about the stability of Tether, the stable currency that is supposedly backed by the USD.
Tether LLC, the company behind the issuance of the coin released a statement saying,
“We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.”
The statement have become necessary to assure traders who have been switching to audited alternatives such as PAX, TrueUSD and Gemini Dollar.
Picture credit: Coinmarketcap
