Bitcoin’s raging 2019 bull run continues, with the leading digital asset hitting a new yearly high of nearly $13,000.
Right now, Bitcoin is up 13.45% at $12,816 according to COIN360, bringing most of the crypto market along for the ride.
As traders try to peg the timing of the next big correction and gauge whether BTC will soon hit a new all-time high, Kraken CEO Jesse Powell says he’s not sweating it until BTC hits at least $100,000.
When I hear people talking about a bitcoin "correction" I'm thinking $100k, maybe $1m. That's what's correct.
— Jesse Powell (@jespow) June 26, 2019
Trade volume on Powell’s San Francisco-based cryptocurrency exchange, which ranks in the top 30 globally, is up nearly 100% in the past 24 hours, according to data compiled by CoinMarketCap, with daily trading volume topping $320 million. Kraken also just raised over $13 million on crowdfunding platform BnkToTheFuture from 2,271 investors who are betting on a bright future for crypto.
Meanwhile, crypto analyst Alex Krüger says the reason for Bitcoin’s burst in the last day is simple: big, aggressive buyers are overpowering the sellers.
In a new mini tweetstorm, Krüger says BTC may retreat in the short term after recording the highest hourly volume in Bitmex’s history.
Time to share why $BTC just moved 13% and reached $12,972, while plowing on heavy volume through all resistance like butter.
— Alex Krüger (@krugermacro) June 26, 2019
The cause is simple: aggressive buyers crossed the bid-ask spread and overpowered both passive and aggressive sellers. Based on price action, there were aggressive buyers with deep pockets in action last night. There was no specific trigger known to anyone outside of them.— Alex Krüger (@krugermacro) June 26, 2019
No specific trigger $BTC last night. Just very large buyers. There has been a myriad of extremely bullish factors in place as of late, which include:— Alex Krüger (@krugermacro) June 26, 2019
- New trading venues => parties front-running Fidelity/Bakkt/Ameritrade/E-Trade/LedgerX flows
- Various macro narratives
"More buyers than sellers" is a meme. I'd bet there were more sellers than buyers. However, buyers were large & aggressive. What moves a market upwards is not "more buyers than sellers" but "aggressive buyers overpowering aggressive and passive sellers".https://t.co/Ue8zk5MOYt— Alex Krüger (@krugermacro) June 26, 2019
The hourly bar that marked tonight's bitcoin $12,972 top had the highest hourly volume in Bitmex's history. When such high volume prints come after an extended run, they often mark a local top. One could appreciate an intraday blow-off top on the 5 minute as well.— Alex Krüger (@krugermacro) June 26, 2019
The CEO of Euro Pacific Capital, precious-metals proponent and longtime crypto critic Peter Schiff is dismissing the bullish sentiment and the notion that Bitcoin is a hedge on the world economy, warning investors to steer clear of the volatile crypto market.
True, but gold is early in a bull market. Bitcoin is a bubble that has already burst. This is a sucker's rally.
— Peter Schiff (@PeterSchiff) June 21, 2019
Both gold and Bitcoin prices have risen recently, causing many to erroneously conclude that the two are rising for the same reason. But stock and bond prices are also rising. Bitcoin and stocks are rising as speculative assets, while gold and bonds are rising as safe havens.
— Peter Schiff (@PeterSchiff) June 24, 2019
When BTC broke $9,600 six days ago, Schiff called the bull run a sucker’s rally. He flatly denies the argument that Bitcoin is emerging as a new safe haven and a digital alternative to gold.
Bitcoin is now up 243% since the start of the year.
CNBC is also looking to explain Bitcoin’s meteoric rise. On Squawk Alley, Seema Mody pointed to Facebook’s Libra as a key catalyst, but says it’s clearly not the only trigger behind the rally.
“A 15-month high is notable because the cryptocurrency has only traded above $11,000 for 2.4% of its total days in existence. While the unveiling of Facebook’s Libra has played a role in Bitcoin’s comeback, it’s worth noting it was already up about 140% this year prior to the announcement.
Others say Bitcoin’s rise has less to do with Libra, which is designed as a means of payment for international money transfers, and more about the uptick in geopolitical tensions from Iran to Turkey to the U.S.-China trade war. Data from CryptoCompare demonstrates how international demand for cryptocurrencies has been on the rise in countries like China. Now this is data based on volume in the last 24 hours.”
Mody also points to indications that institutional investors are pouncing on cryptocurrency as a way to diversify in uncertain economic times.
“There’s some discussion around whether there is a correlation between gold and Bitcoin, with one portfolio manager telling me it’s less about the correlation and more about investors trying to diversify smaller parts of their portfolio into other assets. Genesis Capital, which manages crypto funds for family offices and high-net-worth clients says it continues to see more activity from institutional counterparties with volumes 2-3x higher compared to 12 months ago. That said, Bitcoin is still down from its all-time highs back in late 2017.”
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