Bitcoin Rally Seems to be Starting in July

Bitcoin Rally Could Take Place Later Than Expected | Crypto Coin Growth
Bitcoin Rally Could Take Place Later Than Expected
June 28, 2018
Florida State Government Ponders Appointing a Cryptocurrency Official
Florida State Government Ponders Appointing a Cryptocurrency Official
July 6, 2018

Just as Americans were preparing to enjoy their Independence Day holiday, Bitcoin investors were busy following the cryptocurrency markets and taking long positions as hints of a long-awaited rally appeared to materialize.

After taking a dip below the $6,000 mark in June, Bitcoin was experiencing its third and most prominent market correction; this situation prompted some analysts to call a bottom as low as $4,500. Even traders who follow technical analysis expected moving averages to trend under $5,500 before the first sign of a rally could be observed.

Signs of Rallying Prices

The very first trading session of July resulted in a quick price recovery for Bitcoin; at one point, the most valuable cryptocurrency in the world had gained 12 percent in just one day before settling around $6,600. This spike was followed by a requisite sell-off by day traders, but the market would later even out.

Given the historical volatility that has surrounded Bitcoin trading, it could be too early to tell whether the rally has begun in earnest; in fact, technical analysis suggests that tracing back towards $5,000 would need to take place before a formal rally can be called. On the other hand, economists have different opinions about the factors surrounding this burgeoning rally.

Economists Discuss the Potentials of Currently Investing in Bitcoin

According to Japanese economist Yukio Noguchi, the current rally conditions can be explained by activity in the Bitcoin futures markets at the Chicago Mercantile Exchange and the Board Options Exchange. When these securities were introduced in late 2017, traders immediately started writing short contracts; in fact, the ability to short Bitcoin was the principal motivator behind the creation of these instruments. Now that Bitcoin futures have matured, traders are showing a greater interest in going long, this could very well translate into a rally motivator.

Noguchi further believes that Bitcoin futures will cut down on volatility, which would bring about a more stable rally instead of rocketing towards $10,000 in just a few weeks.

Economists from the United States Federal Reserve have also commented on the Bitcoin recovery, mentioning that it is in line with what should be expected when new commodities are introduced to the futures market. Still, there is one more factor to consider, and it belongs in the category of fundamental analysis: July is the month that G20 finance officials had designated as a deadline to submit recommendations related to blockchain technology.

As more G20 nations present their intent to incorporate blockchain into their monetary operations, the Bitcoin rally is bound to gain greater momentum.
Florida State Government Ponders Appointing a Cryptocurrency Official
Bitcoin Rally Could Take Place Later Than Expected
Buy | BTC - ETH - LTC