Since from the downfall of the crypto market as seen since May this year, the price of bitcoin has broken above $8,000 for the first time after the major breakdown we saw starting this year. As the daily trading volume of major digital assets improve and exchanges see a demand in volume, it may be possible for institutional investors to potentially eye an entrance into the crypto market in the upcoming months.
Bitcoin the largest cryptocurrency by market cap has seen a rise in the price by more than a 30 % this month.There are many factors and happenings going around the world that are helping bitcoin to gain momentum in its price steadily. Some of the major activities going on the market that everyone should know are as under:
1. G20 meet in Argentina
Founder in 1999, the G20 is working for the Global Financial Stability. The members of this Summit include government officials and central bank governors from twenty countries including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, the Republic of South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union which accounts for 85% of the gross world product and 80% of the world trade.
During the G20 discussion held at Argentina, the Finance ministers along with the central bankers from the G-20 states reiterated their hold on the belief that digital currencies does not risk the economic stability of the country and if it does, the Financial Action Task Force is to clarify by October that how these illicit standards apply to crypto currencies in detail. This has provided a relief to the traders all around the world giving them a sense of support for acceptibility of crypto’s in mere future.
2. BitCoin ETF proposal
The hot arising topic in the crypto community now a days is Bitcoin ETF proposal whether to be accepted or rejected again by the US Securities and Exchange Commission ‘SEC’. There are a numerous rumors in the market considering ETF proposal to be accepted by SEC however the final verdict against its approval is since not confirmed. ETF stands for Exchange traded fund. The proposal for Bitcoin linked ETF was filed by VanEck Corp. and Solid X Partners Inc. to the SEC for the world’s first actual Bitcoin backed exchange. In simple term’s this means to actually hold bitcoins insured against all breakdowns arising from loss or theft of the cryptocurrencies, according to the firms.
If this proposal of Bitcoin ETF is approved by the SEC, its expected it could add roughly $84 billion to $336 billion Bitcoin market, potentially pushing its price to rise at new heights.
3. Expanding Trading Features In The Crypto Community
Acknowledging the strong momentum of bitcoin and the cryptocurrency market, exchanges such as Binance have started to eye aggressive expansion in rapidly growing markets. This week, Binance revealed its intent to launch its operations in South Korea, targeting one of the fastest growing cryptocurrency exchange markets internationally.
4. The Growing Popularity Of P2P Marketplaces
The countries in which the crypto regulations are strict and crypto trading is prohibited by the financial government bodies, The peer to peer exchange marketplace is proving to be of a great use for the crypto traders where they can trade according one on one without the interference of the disciplinary financial body. Hence, thereby adding more customer base to the crypto market capitalization.
However, in the past 48 hours, the cryptocurrency market has shown a lack of correlation between major digital assets and tokens suggesting that investors have re-allocated funds stored in small tokens to major cryptocurrencies could also be a major reason for this bitcoin price hike seen.