From Lamborghini auctions to CNBC tweets and interest from institutional investors: these are some of the signs that Bitcoin traders are keeping an eye on to determine when the world’s most valuable digital currency will once again enter rally mode.
News stories about Bitcoin and other major cryptocurrencies being adopted to settle purchase transaction are always welcome by traders and investors. The biggest news in August came from a Forbes article explaining how Bonham, the renowned international auction house based in Europe, is using cryptocurrency to quickly settle wealthy buyers of exotic cars. Bonham is working with a company that provides a digital currency wallet service that provides exchange stability for the purpose of closing a sale in just a few hours. Normally, a Bonham transaction takes weeks to clear when foreign buyers have to wire millions of dollars; this is not the case with cryptocurrencies.
Bitcoin investors are also evaluating the reaction of the Twitter community whenever news reports are posted. Traders are finding that social media mentions have a strong correlation with Bitcoin momentum and trading volume; as can be expected, interviews with renowned analysts tend to create a spike in buying. Gauging the level of engagement combined with certain technical indicators can suggest whether Bitcoin is heading in the direction of a rally.