Bitcoin price has been increased by 17% within past 32 hours, after sinking below $5,560 earlier today. afterward, Bitcoin price had halted at $6,450, increasing daily around $890.
Activated by the sell-off major Bitcoin investors and the rapid surge in the value of Bitcoin Cash and Bitcoin price jumped over the past weekend. Anyhow, as expected, Bitcoin price recovered quickly as the Bitcoin cash price declined from over $2,800 to $1,200.
Short-term indicators for Bitcoin price increase
The sell-off of the large sums of Bitcoin from past few days lead to a major effect, where the traders began to sell their Bitcoin with the fear of the market uncertainty and of the major Bitcoin price correction. Thus, the daily trading level of Bitcoin and Bitcoin cash surpassed the $10 billion mark for the first time in the history.
Anyhow, since the Bitcoin has revealed for several times in the past year, it has been recovered significantly faster than most analysts had expected in the short-term by $6,500.
Historically, after achieving a new all-time growth, Bitcoin wants to correct itself to the point that is more than the previous all-time high and initiate a new rally to achieve a new all-time growth. For example, when Bitcoin price achieved a new all-time growth by $4,500, in the beginning, of this year, it corrected itself to around $3,300 and initiated a new rally which allowed it to grow to the $5,000 region.
A similar trend will occur in the upcoming weeks in the US market. The second largest Bitcoin market behind Japan is highly confident in regards to the entrance of institutional and retail investors into the Bitcoin market.
CME Group and CBOE, are the two largest options for exchange domestically and globally, will be launch Bitcoin futures exchanges by the end of 2017, to provide an infrastructure and sufficient interchangeability to the institutional investors.
In the beginning, Mike Novogratz, billionaire legend of the hedge fund revealed that the crowd of institutional investors is getting ready to engage in Bitcoin trading. Such movement will be made possible with the launch of large-scale Bitcoin futures exchanges approved by the US Commodities and Futures Trading Commission (CFTC).
The acceptance of Bitcoin futures exchanges by CFTC is fundamentally different than the approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in March of 2017 since, the CFTC has already accepted the LedgerX to operate as a Bitcoin unoriginal, options and futures exchange for retail investors. Though, the approval of CME Group and CBOE to launch Bitcoin futures exchanges is guaranteed and is not conditional.
Billions of money on the sidelines to come to the Bitcoin
By the strictly regulated Bitcoin futures exchanges, it is called as “money on the sidelines” invested in offshore banking accounts, wealth management products (WMPs) and traditional assets will move to Bitcoin in the mid-term. As Novogratz described:
“I can hear the herd coming. I was just in San Francisco, met with a few big institutional investors and their still ways away but they’re coming. Lots of funds are being raised and so I’m pretty confident to say that it [Bitcoin price] is going higher.”
These incidents will allow Bitcoin price to achieve new growth before the end of 2017 and potentially gear towards the $10,000 mid-term price target of highly regarded financial analyst Max Keiser.