Bitcoin Price Surges Even As Cryptocurrency Bears Declare Bitcoin Is Dead
Rumors of bitcoin’s death have been “greatly exaggerated,” to quote iconic author Mark Twain. The bitcoin price surged April 12 after cratering below $7,000 for two weeks.
The price of one bitcoin (BTC) hovered at $7,680 as of this writing, up more than 11 percent from 24 hours earlier, according to data from cryptocurrency exchange Coinbase.
Not surprisingly, all 10 of the top 10 cryptocurrencies by market cap followed bitcoin’s lead, since bitcoin price movements usually have a trickle-down effect on other virtual currencies. It has been a rough three months for bitcoin, which has suffered the worst first quarter in its history.
Bitcoin recently came under pressure amid regulatory crackdowns in Japan, Russia, China, South Korea, and the United States. Adding to the downward squeeze were cryptocurrency ad bans instituted by Twitter and Google. Social-media giant Facebook had banned crypto ads in January 2018.
Cboe Cheerleads On Behalf Of Bitcoin ETFs
Despite the barrage of negative news, the Cboe has signaled its confidence in the budding cryptocurrency market.
In a March 23 letter to the Securities and Exchange Commission, the Cboe urged the SEC to allow bitcoin exchange-traded funds (ETFs), saying there was enough liquidity and price information to put it on par with other commodities at the same junctures in their evolution.
Cboe president Chris Concannon said bitcoin’s market penetration is only widening with time, and it is gaining greater acceptance around the world.
“Because of its innovative features as a digital asset, bitcoin has gained wide acceptance as a secure means of exchange in the commercial marketplace and has generated significant interest among investors.”
Tom Lee: Bitcoin Price Will Spike After Tax Day
While the exact reasons for today’s bitcoin rally isn’t entirely clear, market experts like Fundstrat co-founder Tom Lee predicted the rise in bitcoin prices around this time.
Lee recently said he believes the bitcoin price will climb after Tax Day in the United States passes. He reasoned that BTC prices slumped recently because investors were rapidly trying to sell off their holdings in a bid to avoid paying capital-gains taxes.
“Selling pressure for bitcoin should be alleviated after April 15,” Lee said in a note. Tax Day is April 17 this year because the 15th is a Sunday.
Tom Lee has set a bitcoin price target of $25,000 for the end of 2018.
