Bitcoin Leads Crypto Market To Ten-Month High
The Bitcoin market has emerged from its long slumber and is even now moving higher. The price of Bitcoin versus the dollar is now at a ten-month high, trading just below $8,500. At these levels, it is on the verge of a major breakout. The $8,500 level is equal to the ten-month high, a break of which would lead to BTC higher. My targets are $10,000, $12,000, $16,000, and eventually $20,000.
While the entire cryptocurrency market is experiencing bullish behavior, Bitcoin is the clear winner. Not only has it’s total market cap increased by more than 60% over the past month, but its dominance of the market has also increased. Bitcoin dominance, a measure of BTC’s market share, has surged nearly 10% over the last month. This is its highest level of dominance since just before the 2017 market crash.
Likewise, Bitcoin’s hash-rate has also seen a notable increase in recent weeks. The hash-rate, a measure of computing power allocated to the BTC blockchain, has been steadily rising since early 2018. This gain is contrary to most of the price action during 2018 and a sign of support within the mining community.
Interest In Bitcoin Is On The Rise
TD Ameritrade recently revealed “tens of thousands” of their clients are interested in Bitcoin. This interest is driving the market toward full regulation, a sentiment echoed by the SEC chief when he said a BTC ETF was inevitable.
Meanwhile, the use of Bitcoin is also on the rise. The Lightning Network has made it possible for merchants and customers to transact in BTC even if merchants don’t technically accept it. The latest development is the release of the SPEDN app from payments provider Flexa. The app is already being used by major retailers like Whole Foods, Lowe’s, and Nordstrom.
Bakkt Is On The Way
One of the most bullish developments for the Bitcoin market in recent months is the Bakkt platform. Balkt is a full-service Bitcoin exchange, wallet, trading platform, and clearing-house that has been in the works for over a year. It is a joint venture between the Intercontinental exchange and its partners but slow in its release. The delays have not been due to the platform itself but rather to how it was planning on holding/clearing BTC transactions. The platform has made plans to alleviate regulators issues tied to its holding/clearing process and now slated to begin live testing this summer.
The Bakkt development is crucial for one simple reason; it is an SEC-regulated Bitcoin Exchange. This means the infrastructure for SEC-regulated derivative products, long a reason why the BTC ETF has been denied, is now in place. With the infrastructure in place for a regulated BTC ETF, it seems more and more likely the SEC will approve said ETF in the near future.