3 Things Holding Bitcoin Above $8K Right Now
With Bitcoin inching closer to breaking below $8k, investors are holding their breath. But, these three key developments might just keep its head above water.
1. Fidelity’s New NY License
Fidelity receiving permission from the New York State Department of Financial Services (NYDFS) to offer bitcoin trading and storage services yesterday failed to bolster BTC price. But that doesn’t make it any less epic.
Rather like Bakkt’s tepid launch, the onboarding may start slowly. But the fact can’t be denied that significant infrastructure is being built out for institutional investors.
Fidelity is worth some $2.8 trillion and will now trade and custody BTC. This opens up yet another door for the institutional dollars to come in.
2. Difficulty Adjustment Tomorrow Could Bring Fresh Gains
As Bitcoinist reported on Monday, a new Bitcoin bull run could start tomorrow if the increase in difficulty hits its expected gain of 4% on Thursday.
Analyzing 9 years of data, drops in BTC price have often occurred ahead of a significant difficulty increase–and they have always been followed by significant price gains, according to analyst PlanB.
However, as we pointed out, past performance doesn’t guarantee future results. Moreover, the difficulty adjustment has dropped to 2.73% at the time of writing.
Will it edge back up by tomorrow? That’s anyone’s guess, but every man, woman, and their respective dogs will be watching the market tomorrow.
3. Galaxy Digital Launches New Bitcoin Funds
Billionaire Mike Novogratz is tirelessly aiming at luring in the big investors to Bitcoin. Galaxy Digital Capital Management LP yesterday launched its Galaxy Bitcoin Fund and the Galaxy Institutional Bitcoin Fund. The minimum investment is a pretty sizeable $250K, which should hopefully bring more money into the BTC market.
Both of these funds give institutional investors access to passively managed vehicles and low-fee exposure to “institutionally wrapped bitcoin”. Accredited investors don’t have to navigate the risk or complexity of managing bitcoin investments directly.
There may be some analysts calling for a bearish month end, but these events alone may just be enough to keep Bitcoin above the $8k threshold.
Do you think Bitcoin will survive above $8K before the year end? Add your thoughts below!
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