Bitcoin Crosses $6,000

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Bitcoin has overtaken $6,000 for the first time in six months, rising by 33% since April and doubling since December.

The currency rose by about $400 in the past two days, now standing at $6,050 at the time of writing.

That’s on relatively high trading volumes of $16 billion with Brazil seeing a considerable premium of $400 on a new exchange, Negocie Coins, which has managed to gain trading volumes of $2 billion in the past 24 hours.

Bitcoin’s price on daily candles, May 2019.

Bitcoin has just gone through a cup and handle that now seems to be developing out.

According to technical analysis, a cup and handle is usually a very bullish sign marking the depletion of bear selling and the rise of bulls.

Obviously, whether that actually turns out to be the case remains to be seen, but bitcoin and cryptos in general have seen some bullish momentum as it heads towards the halving in 2020.

One reason could potentially be China in addition to the entrance of Latin America.

A Chinese exchange, TOPBTC, is seeing a $150 premium on considerable volumes of $214 million for the very rare BTC/CNY pair.

Rare because China banned centralized crypto exchanges, but TOPBTC manages to operate that pair from Malta.

The other big story is the entrance of institutional investors as bitcoin moves away from early adopters to the second stage of adoption.

Fidelity is now starting bitcoin trading, while Bakkt plans to do the same, but under the direct jurisdiction of CFTC.

New infrastructure is being laid out to serve family offices and other wealthy investors, with a third theme being geopolitics.

For the first time in many decades, countries can opt out of the international banking system and can still manage to function if they set up proper new infrastructure.

That opting out is also available in many countries where inflation is relatively high or unbearable. Venezuela is an extreme example, but Argentina too, Brazil, and others.

That storing of value, its easy transportability, and the rise of bitcoin as an uncorrelated new asset class, might all be combining to form a mainstream story of digital money.

Copyrights Trustnodes.com

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