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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.
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.
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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.
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.
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.
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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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