Bitcoin rallied on Friday, showing a 7% rally by the end of the day in Tokyo to a high of $5,750 according to CoinDesk data – this was its highest level since November 14. This rally was somewhat technical and fundamental but the important news is that it is up 50% since the start of the year. Other digital assets, including ether and XRP, also rallied and this could mean an ongoing move higher.
A series of research pieces from Tom Lee suggests that Bitcoin could be coming out of a long winter……
Ether was up 5% and XRP was up 2% on the day. Still when we look at historical figures, Bitcoin is still down 70% from its high in December 2017 when it traded near $20,000. The low in December 2018 was a fall of about 84% which is almost exactly the same sell-off in percentage terms as two other times since 2010.
Overall, Cryptocurrency market participants have been focusing on the 2018 moves into blockchain and cryptocurrencies as major banks and credit card issuers have been working with these technologies. Keep in mind that Northern Trust, JP Morgan, Citi and Normura have all been focused on these technologies for settlement and for even issuance (other firms), of virtual bonds. More on this topic in the coming weeks.