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Bitcoin’s [BTC] pump is due to ‘credentializing’ of crypto by the likes of Microsoft and Facebook, claims Mike Novogratz

Biraajmaan Tamuly

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Bitcoin pump is due to credentialing of crypto by the likes of Microsoft and Facebook, claims Mike Novogratz
Source: Pixabay

Much of the cryptocurrency community was excited and confused in equal measure after Bitcoin [BTC] crossed the $8000 mark. The majority of the community could not put their head around a reason for this consistent pump, with many analysts and traders stating that there were no fundamental factors affecting the market at the moment.

However, Mike Novogratz, CEO of Galaxy Digital Holdings, pointed out a few developments that might have had a hand in the current valuation spike.

Speaking to CNBC, Novogratz cited Microsoft’s big announcement where they mentioned the initiation of an identity solution on top of the Bitcoin blockchain. Further, Facebook also recently entered the picture after it announced the removal of the ban on cryptocurrency and blockchain-related ads.

These were two of the biggest companies “credentializing” the validity of blockchain and crypto in the market, which inadvertently had an effect on the prices of Bitcoin [BTC].



He added that the initial boom of 2016-2017 was 98 percent based around retail-driven investments, but in the current price hike, some major institutions were prominent as many had started to buy crypto.

One of the other speculated reasons behind Bitcoin’s [BTC] surge was the fact that the market had been tolerant of negative news. The Tether-Bitfinex fiasco hardly affected the price of Bitcoin [BTC], while it still continued to consolidate higher, without any major pullback.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

Bitcoin

Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?

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Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?
Source: Unsplash

Bitcoin’s price rally in a parabolic curve led most of the community to believe that this was the bull rally, however, the correction of this surge was due, which began on May 16.

The correction wave, as expected by many prominent traders was approximately 30-40%, which would put the price of Bitcoin $5,000 to $5,800. However, the correction seems to have finished as the price of Bitcoin surged by more than 7% in less than an hour.

Source: TradingView

The market cap of Bitcoin, at press time, was $136 billion and most the volume for Bitcoin was coming from BitMEX exchange via trading BTC/USD derivatives. BitMEX contributed a total of $3.38 billion in terms of trading volume, which is 12% of the total trading volume.



A Twitter user @DoveyWan suggested a head and shoulder pattern for Bitcoin:

CNBC suggested something similar, however, the pattern doesn’t seem to be holding. A Twitter user @thecryptomonk, tweeted:





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