Newsflash: Bitcoin Price Pierces $8,000 as Bulls Defy Bearish Warnings
Bitcoin Price Zooms to Four-Day High
Bitcoin had languished below $8,000 for much of the past three days, following a brutal correction that smacked BTC/USD as low as $7,432 on Bitstamp, more than 18 percent off the year-to-date peak of $9,096 it set on May 30.
However, shortly after 12 pm ET, the bitcoin price began to trend upward, and at 12:16 it eclipsed the $8,000 mark. That triggered another small bump, and by the time of writing, BTC had popped as high as $8,100 to post a four-day high and pump its market cap up to $143 billion.
Altogether, the crypto market cap rose to $258.7 billion.
Crypto Comeback Defies Bearish Warnings
But as the parabolic cryptocurrency market rally kicks back into high gear, we’re left with an uncomfortable question: Can it last?
Two days ago, crypto analyst Willy Woo published some alarming data that suggested the bitcoin recovery had already gotten out of hand.
Writing on Twitter, he warned that BTC’s market price had ballooned far beyond organic levels, approaching heights not seen even during the 2017 bull market mania.
Presently the market price of BTC has outstripped organic investor flow unseen since the bull market mania phases of 2013 and 2017. Never before have we seen such a divergence so early in the bull market. pic.twitter.com/S3rfBKdlzL
— Willy Woo (@woonomic) June 6, 2019
Absent organic capital inflows from investors, he concluded that the recent jump above $9,000 was powered by “short term trade activity” and not sustainable.
“This is a quant fund driven short squeeze devoid of any true investor volume,” he wrote. “I’m awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market.”
Bitcoin Pounds Higher as 1.3 Billion People Face Ownership Ban
Even more notably, the bitcoin price managed to pound past $8,000 even as India, the world’s second largest country with more than 1.3 billion residents, introduced a bill that would place an outright ban on cryptocurrency ownership.
The bill, as CCN reported, would criminalize all cryptocurrency use and ownership. Current investors would be forced to dump their holdings within 90 days, and offenders would face massive penalties including decade-long jail sentences.
There was a time when such reports would have triggered instant price crashes. “China bans bitcoin” rumors were once so devastating to the market that they inspired a meme.
Now, though, many analysts – including VanEck Digital Asset chief Gabor Burbacs – believe that the industry has grown so strong that an outright ban would spur further adoption.
Banning crypto in India would only lead to further adoption. 🤷♂️
— Gabor Gurbacs (@gaborgurbacs) June 7, 2019
About The Author
Josiah is the US editor at CCN. In a past life, he taught Herodotus and Boethius to high school students. He holds long-term investment positions in bitcoin and other large-cap cryptocurrencies. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.
This article was edited by Josiah Wilmoth.