- · Crypto pundits foreshadow the whole digital currency market could hit $1 trillion this year
- · Wells Fargo underlines positive correlation between Bitcoin and the stock market
- · Canadian regulator calls Google to follow Facebook and ban cryptocurrency ads and suchlike products
Bitcoin continued climbing over the past several hours being propped up by testimonies delivered by heads of the CFTC and the SEC on Tuesday. A technical analysis suggests that the most famous virtual coin has slipped into an ascending channel and a sequence of higher highs and lows appears to confirm rising power of bulls. While the whole cryptocurrency block erased a considerable amount of its capitalization from the peak reached at the beginning of the past month, there are fresh calls heralding that total market capitalization could cross outstanding $1 trillion as soon as this year.
Some crypto pundits forecast the entire cryptocurrency market capitalization could strike $1 trillion this year.
Is this possible at all? So, having regard to digital currencies you never know what could happen in the nearest future, thus crazy capitalization at $1 trillion is not completely without chances but it will not be an easy task. Some experts told CNBC that cryptocurrencies could go on a bull run greater than last year passing the trillion-dollar mark in terms of their joint value. For one, Thomas Glucksmann, head of business development at cryptocurrency exchange Gatecoin, said that "increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year".
Bitcoin is trading within a bullish sequence, higher highs and lows suggest an uptrend which has just commenced. The first resistance might be found at around an upper limit of the channel and it’s been marked by the blue arrow. A durable breakout of $7200 would mean the end of the ongoing rebound.
Wells Fargo strategist paints the upbeat backdrop for cryptocurrencies and equities
Is positive correlation between Bitcoin and the US stock market going to last going forward?
"If the Bitcoin bubble bursts, the stock market may go down along with it" - these are words coming from Christopher Harvey, head of equity strategy at Wells Fargo, who points out a correlation between the two classes of assets. His findings suggest that another crash in the stock market could entail declines on Bitcoin therefore the best gauge for predicting future moves of the Bitcoin price is simply by assessing the risk. Of course short-term correlation is insignificant from a statistical point of view, however, in it has acted quite well recently so it’s worth keeping a closer eye on it trying to determine where Bitcoin could be heading.
Canadian watchdog wants Google to follow Facebook in banning crypto ads
Everybody knows that the latest decision taken by Facebook dealt a massive blow to Bitcoin and other digital currencies. Thus, if Google did the same, it would depress the whole cryptocurrency market. Some pushes to do so came from Canada where the domestic regulator urged Google to ban cryptocurrency ads as well as ads for ICOs and binary options. However, it’s very unlikely that Google will decide to introduce a ban as the company is the largest recipient of advertising from cryptocurrency companies.