Today, the price of bitcoin jumped above $8,000, surging 20 percent in the last week to extend to its highest level in two months.
Mati Greenspan, Senior Market Analyst at eToro, the world’s largest social trading platform:
“The crypto market is usually fairly disconnected from the day-to-day activities of central banks. But over the past few days, the BTC price rally gave us a taste of what can happen when markets get a whiff of upcoming policy changes by the market’s largest players. The Bank of Japan, which has been aggressively printing money since 2013, announced July 23 that they’re willing to buy an unlimited amount of bonds.
The reaction came swiftly as many analysts feel that this is simply a precursor to deeper changes in the BoJ’s policy. Japanese Bond Yields went through the roof.
At the same time, the price of bitcoin spiked notably finding fresh new highs following the BoJ’s announcement.
A quick look at the global volumes confirms that this trading action did indeed occur predominantly in Japanese Yen. It seems that Japanese traders have their own ways to hedge the actions of their central bank.
Today, the crypto rally continued, and Bitcoin topped the key psychological level of $8,000 during Japanese trading hours – clearing the way for a potential run up to $10,000.”
Nolan Bauerle, Director of Research at CoinDesk:
“Bitcoin can behave as a type of reserve currency for the entire digital asset system. Over the past month, we’ve seen the bitcoin dominance index jump up to 47%, or back to levels seen last December. This suggests that there is perhaps some risk management on the part of altcoin holders which has spiked demand for bitcoin.”
Josiah Hernandez, Chief Strategy Officer at Coinsource, the leading operator of Bitcoin ATMs:
“While the price of bitcoin is often the most observed metric by which onlookers measure success, it is actually largely inconsequential to mainstream adoption of BTC and bitcoin’s fundamental appeal to investors and consumers. Despite being in a bear market since December, bitcoin has facilitated the transfer of over $2.3 trillion USD in notional value year-to-date, with a median daily transfer value of $9.8 billion. In regards to its competitiveness as a payment rail, median transaction fees have decreased from over $10.00 per transaction during peak to current levels of under $0.30 per transaction. Additionally the recently launched lightning network brings transaction fees down to under $0.01 per transaction and brings transaction capacity up to 1 million transactions per second. Scalability at the base layer has also been addressed with segwit adoption and as well the Schnorr signature proposal.
In short, investors subscribed to the investment thesis of bitcoin as the protocol for value transfer over the internet should view recent developments as positive, regardless of price action.”
Eiland Glover, CEO of stablecoin Kowala:
“Crypto traders are well aware that with nearly 40% of the market, Bitcoin holds enormous influence over the price of other cryptocurrencies; with its first mover advantage, Bitcoin’s ability to affect general market trends is enduring. However, over time, this dominance will dip. It’s important to realize that Bitcoin is just the beginning, and that we are on the cusp of the tokenization of everything—assets, attention, reputation, content, etc. This process will draw more capital into the token economy and create as-yet unimagined categories of ownership, investing, and trading. Cryptocurrency exchanges should be better positioned to take advantage of these developments than futures, commodities, and equities exchanges. The days when bitcoin could coast off its first mover advantage are quickly coming to an end, and the rise of altcoins and stablecoins are a good part of the reason why. But it’s still just a first step. As the industry continues to mature, and we start to give the general public new ways to use crypto and not just trade it, we should take advantage of the bull market, but understand that Bitcoin prices alone will not be the determining factor of crypto investor sentiment for long.”
Roberto Rabasco, Co-founder and Application and Cloud Technology Expert at Orvium, the open-source and decentralized platform for managing scholarly publications’ lifecycles:
“In recent weeks, we’ve seen different movements from big institutional actors which have had positive effects on the entire cryptocurrency and token sector. Some of these movements included big banks offering the possibility to their customers to pay using crypto, social networks like Facebook allowing crypto projects to run marketing campaigns on the platform, and those who were previously crypto detractors publicly changing their minds and openly speaking about the great benefits of blockchain technology and crypto assets. The cumulative effect of these and other actions has been a massive upsurge in investors’ confidence in Bitcoin and the crypto market more generally.”