- By Pierre-Alexandre
September 9th, 2019
Bitcoin saw a recovery rally last week as its price surged to $10,850 levels on news of VanEck launching a limited Bitcoin ETF.
Last week bitcoin investors saw a relief rally for the cryptocurrency as its price surged above its crucial support of $10,000 levels. In the last week of August 2019, Bitcoin had slipped way below $9500 and was struggling to see any and upward momentum.
However, last week’s institutional action with VanEck launching a Limited Bitcoin ETF in the market provided Bitcoin the much-needed thrust to move above $10,000 levels.
At press time, Bitcoin is trading at $10,372 with a market cap of $189 billion and daily trading volumes crossing over $13 billion. According to the Omenics’ crypto data, the Bitcoin price has surged 6.13% over last week.
Top Bitcoin News
- The major reason for the Bitcoin price rally was the VanEck-SolidX announcement of launching a limited version of the much-awaited Bitcoin Exchange Traded Fund (ETF). Note that the ‘Limited ETF’ is not a real ETF but a similar product that “allows for shares to be created and redeemed like ETFs,'' said Ed Lopez, head of ETF Product at VanEck,
Unlike the actual ETF, this product won’t be listed on a national exchange. However, with this launch, VanEck’s major aim is to prove the regulators that there’s a sizeable market waiting on the sidelines for the launch of ETF like investment products, in the crypto market.
- As Venezuela’s economic woes with hyperinflation continue to spiral, Bitcoin trading in the country continues to hit new records on the P2P exchange LocalBitcoins. As per the data released by CoinDance, a massive 114 billion worth sovereign bolivars (VES) were traded on the exchange in the last week of August 2019.
- Last Thursday, September 5, a Bitcoin whale moved a massive 94,504 BTC tokens worth over $1 billion. As per Twitter handle Whale Alert, the transaction took place between two unknown crypto wallet addresses.
- This news made noise because the trader paid a massive $700 fee for this transaction. Some experts say that this was 20x the fee paid as the transaction could be processed just at $35 at 480 satoshi per second.
- Popular Bitcoin commentator Max Keiser called this as signs of increasing institutional participation. He added that the risk/reward is very favourable for investors at this stage.
Institutions building inventory for their market-making needs going forward. This = effective ‘put’ on the BTC price at $9,000 (as I’ve been reporting for several yrs now). Ie, institutions are net-buyers of any BTC that shows up at $9k. Risk/reward now for buyers is excellent. https://t.co/up7irZufX6— Max Keiser, tweet poet. (@maxkeiser) September 6, 2019
- During an interview on CNBC’s Squawk Box, popular asset manager Mark Mobius suggested that Bitcoin should be backed by gold to give it some real value. In general, Bitcoin is often seen as an alternative to physical gold making asset mobilization easy. But Mobius seems to rather suggest integrating the two. He said:
“If there is a cryptocurrency that is really backed by gold — and that is, there is a meaningful agreement and some kind of modern thing of this connection — then this could be quite interesting.”
Bitcoin Market review Using Omenics’ Sentscore
With the Bitcoin price recovery, the overall market sentiment improved as the Omenics’ Sentscore chart shows a movement from the “neutral” zone to now into the “positive” zone.
Similarly, the news sentiment around Bitcoin has jumped with the Bitcoin price surge. The graph shows the news sentiment moving northwards from the “neutral” zone to now into the “positive” region:
The social sentiment indicator shows some volatility but has moved from the “negative” region to the “neutral” zone:
The buzz around Bitcoin moved from “not trending” to “less content than usual” region. However, it is back on the downward trajectory:
The Bitcoin technical chart shows strength moving from the “bearish” to currently oscillating in the “bullish” zone: