This is the highest price that Bitcoin has had for three months, and the jump took place within sixty minutes yesterday (17th of July) between 20:30 and 21:30 UTC.. The jump can be interpreted as the beginning of a reversal of a bear market which has lasted for more than six months. What could have caused it?
Background
Bitcoin has been in a general decline since the beginning of this year. A single bitcoin cost almost $20,000 in mid-December 2017, $16,000 in January, and dipped below $6,000 in June.
Markets being as they are, it is difficult to list all factors affecting the price of any major commodity/currency when it exists in only a single country, so accounting for all variables with an intrinsically international and infamously volatile item like Bitcoin may be impossible. However, there were some major developments which are typically accepted as driving the bear market.
The first thing to mention would be when all major Western media platforms banned cryptocurrency advertising as a response to an infestation of scams. Cryptocurrency companies rely on the internet to advertise, so this was a major blow.
Thefts of enormous amounts of money from cryptocurrency exchanges such as Coincheck of Japan, BitGrail of Italy, Binance of Hong Kong and Coinrail of South Korea also played a part in denting public confidence.
The decisions of financial regulators in major markets also had their effect on the market. In the US, the Internal Revenue Service won its case against that country's top cryptocurrency exchange in February, resulting in the personal data of all high-earning customers being revealed to the taxman. The Securities and Exchange Commission announced in March that all trading platforms would have to register to operate in that country, and the Commodity Futures Trading Commission sent subpoenas to several American exchanges over suspicions of price manipulation.
In China, entire sectors of cryptocurrency business were banned in 2017, but the appointment of a new central bank governor raised hopes that the country might become a Bitcoin powerhouse again. However, this was not the case, as the new governor and his deputy turned out to be just as strictly anti-Bitcoin as their predecessors.
In Japan, the Financial Services Agency cracked down hard following the theft of hundreds of millions of dollars of cryptocurrency from Coincheck.
Other factors included unexplained movements of large amounts of Bitcoin from wallets that hold enough money to destroy the Bitcoin economy, reports of crypto-jacking viruses infecting thousands of computers worldwide, fears that the entire Bitcoin network is at risk of being dominated by one Chinese company, and more than one widely-publicised study claiming that Bitcoin value is being manipulated from behind the scenes.
These are just some of the factors generally accepted to have been behind the downturn in value.
So what has changed?
It can be speculated that the upturn in price is the result of one major announcement occurring against a backdrop of a general global warming of regulator-cryptocurrency relations.
The major announcement came from the CEO of Blackrock, one of the biggest and most influential companies in the world. He said on Monday that he has changed his mind about cryptocurrency (he was not a fan) and will be creating a team to look into cryptocurrency investment. Blackrock has a market capitalisation of approximately $82 billion and manages trillions of dollars' worth of assets - it has been described as the world's largest shadow bank.
Regarding global legislation, there has been a general trend over the last few months of jurisdictions becoming more accommodating. For example, we recently reported the passing of new cryptocurrency-friendly laws in Malta, Japan, and South Korea. While Malta is a small economy looking to attract business, Japan and South Korea are major economies in general and key markets for Bitcoin specifically. Events in both of these places have proven to have had dramatic effects on the cryptocurrency market in the past.
Bermuda recently announced itself as a cryptocurrency hub too - while obviously not a major economy, the presence of business-friendly jurisdictions is always a positive sign for any industry.
Legislative moves aside, there is a constant stream of news stories about major companies and banks adopting cryptocurrency, experimenting with cryptocurrency, and making positive comments about cryptocurrency.
An article in Forbes argues that the market upturn is only going to continue as FOMO continues to be a factor in investor behaviour.
Matthew Newton, a market analyst at eToro, said: "We’ve seen a flurry of positive announcements this week, including a nod from the FSB [Financial Stability Board] and a big-pocket investor like BlackRock. After a few weeks in the doldrums, news like this goes a long way in lending legitimacy to crypto as an asset class, which is powerful over the long-term.
However, good news is not as influential as bad in a bear market. The market was quietening down over the last week, which is typical around market bottoms when investors lose interest and focus on other things. A great technical setup yesterday may also have helped spur prices forward.
Investors would be wise to remain cautious, as we saw a similar situation in April where some big short positions were squeezed causing the price to surge. That said, if bitcoin pushes past $8k, it’ll indicate that the bull is back and prices could continue to climb further.”
This is the highest price that Bitcoin has had for three months, and the jump took place within sixty minutes yesterday (17th of July) between 20:30 and 21:30 UTC.. The jump can be interpreted as the beginning of a reversal of a bear market which has lasted for more than six months. What could have caused it?
Background
Bitcoin has been in a general decline since the beginning of this year. A single bitcoin cost almost $20,000 in mid-December 2017, $16,000 in January, and dipped below $6,000 in June.
Markets being as they are, it is difficult to list all factors affecting the price of any major commodity/currency when it exists in only a single country, so accounting for all variables with an intrinsically international and infamously volatile item like Bitcoin may be impossible. However, there were some major developments which are typically accepted as driving the bear market.
The first thing to mention would be when all major Western media platforms banned cryptocurrency advertising as a response to an infestation of scams. Cryptocurrency companies rely on the internet to advertise, so this was a major blow.
Thefts of enormous amounts of money from cryptocurrency exchanges such as Coincheck of Japan, BitGrail of Italy, Binance of Hong Kong and Coinrail of South Korea also played a part in denting public confidence.
The decisions of financial regulators in major markets also had their effect on the market. In the US, the Internal Revenue Service won its case against that country's top cryptocurrency exchange in February, resulting in the personal data of all high-earning customers being revealed to the taxman. The Securities and Exchange Commission announced in March that all trading platforms would have to register to operate in that country, and the Commodity Futures Trading Commission sent subpoenas to several American exchanges over suspicions of price manipulation.
In China, entire sectors of cryptocurrency business were banned in 2017, but the appointment of a new central bank governor raised hopes that the country might become a Bitcoin powerhouse again. However, this was not the case, as the new governor and his deputy turned out to be just as strictly anti-Bitcoin as their predecessors.
In Japan, the Financial Services Agency cracked down hard following the theft of hundreds of millions of dollars of cryptocurrency from Coincheck.
Other factors included unexplained movements of large amounts of Bitcoin from wallets that hold enough money to destroy the Bitcoin economy, reports of crypto-jacking viruses infecting thousands of computers worldwide, fears that the entire Bitcoin network is at risk of being dominated by one Chinese company, and more than one widely-publicised study claiming that Bitcoin value is being manipulated from behind the scenes.
These are just some of the factors generally accepted to have been behind the downturn in value.
So what has changed?
It can be speculated that the upturn in price is the result of one major announcement occurring against a backdrop of a general global warming of regulator-cryptocurrency relations.
The major announcement came from the CEO of Blackrock, one of the biggest and most influential companies in the world. He said on Monday that he has changed his mind about cryptocurrency (he was not a fan) and will be creating a team to look into cryptocurrency investment. Blackrock has a market capitalisation of approximately $82 billion and manages trillions of dollars' worth of assets - it has been described as the world's largest shadow bank.
Regarding global legislation, there has been a general trend over the last few months of jurisdictions becoming more accommodating. For example, we recently reported the passing of new cryptocurrency-friendly laws in Malta, Japan, and South Korea. While Malta is a small economy looking to attract business, Japan and South Korea are major economies in general and key markets for Bitcoin specifically. Events in both of these places have proven to have had dramatic effects on the cryptocurrency market in the past.
Bermuda recently announced itself as a cryptocurrency hub too - while obviously not a major economy, the presence of business-friendly jurisdictions is always a positive sign for any industry.
Legislative moves aside, there is a constant stream of news stories about major companies and banks adopting cryptocurrency, experimenting with cryptocurrency, and making positive comments about cryptocurrency.
An article in Forbes argues that the market upturn is only going to continue as FOMO continues to be a factor in investor behaviour.
Matthew Newton, a market analyst at eToro, said: "We’ve seen a flurry of positive announcements this week, including a nod from the FSB [Financial Stability Board] and a big-pocket investor like BlackRock. After a few weeks in the doldrums, news like this goes a long way in lending legitimacy to crypto as an asset class, which is powerful over the long-term.
However, good news is not as influential as bad in a bear market. The market was quietening down over the last week, which is typical around market bottoms when investors lose interest and focus on other things. A great technical setup yesterday may also have helped spur prices forward.
Investors would be wise to remain cautious, as we saw a similar situation in April where some big short positions were squeezed causing the price to surge. That said, if bitcoin pushes past $8k, it’ll indicate that the bull is back and prices could continue to climb further.”
Schwab Aims Crypto Custody at Its $5 Trillion Advisor Channel by 2027
Featured Videos
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
Buying The Deep: Digital Asset Adoption in APAC and Beyond
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
