The crypto market is having a good week on the whole so far. Over the past two days, Bitcoin has added more than $10 billion in market capitalization while the total market capitalization of cryptocurrencies has grown to almost $300 billion.
This week’s surge is attributed to the current earnings season, which started on Friday last week. On Monday, Blackrock, one of the biggest asset managers with assets under management of $6.3 trillion announced that it would start considering Bitcoin investments. This was big news for the crypto world which has seen a decrease in demand over the past few months. Traders believe that other large asset managers will start considering cryptocurrencies following Blackrock’s lead.
Yesterday, Goldman Sachs, one of the most important banks in the United States named David Solomon as the next CEO. This was an expected move, seeing as the firm made him the sole president of the firm a few months ago. Solomon will take over from Lloyd Blankfein who has been at the helm for more than 12 years. In the past few months, Solomon has been a major advocate for cryptocurrencies.
Another major positive report was from the Financial Stability Board (FSB), which is an international financial watchdog. The organization released a report saying that cryptocurrencies did not pose a major challenge to the international financial system.
Finally, Steven Cohen, the founder of Point72 Asset Management announced that he had started to invest in cryptocurrencies. Steven is one of the most popular hedge fund managers in Wall Street with unrivalled performance. He was the founder of SAC Capital, a hedge fund he was forced to shut down after allegations of insider trading.
The question now is whether Bitcoin will hold its gains. In the past, such lavish news has not materially helped cryptocurrencies. For example, when CBOE and CME listed Bitcoin futures, traders expected more demand from institutions. Instead, the demand didn’t increase, and most institutions placed short trades.
The BTC/USD pair is now trading at 7,358, which is the highest level since early June. The pair is trading above the 55-day exponential moving average and the 100-day EMA. It is trading on the upper side of the Bollinger Bands with the RSI currently at 79. This is considered an overbought position, which means that some bulls could look to exit their positions. While Bitcoin might continue to move higher during the earnings season, there is also a likelihood that it might have a correction as bulls exit.
