BTC price reached $8265May 16, 2019
According to CoinMarketCap, the BTC price has reached a high of $8265. At the same time, trading volume, in dollar terms, continues to increase, reaching $34 billion.
It is the maximum figure in the entire history of Bitcoin cryptocurrency. The previous peak was at the beginning of January 2018, when, with a BTC price of $17000, trading volume was close to $24 billion.
Considering the solid growth of the absolute majority of cryptocurrencies, now there are 16 coins with a capitalization of more than $1 billion. We recall that there were only 13 of them at the beginning of the previous week.
The driver for strong growth is the geopolitical factor – the trade war between the two largest economies in the world, the USA and China. On Friday, May 10, US President Donald Trump raised tariffs on imports of Chinese goods from 10% to 25%. Given the current volume of imports, this tariff increase is approximately $ 200 billion per year. Of course, this is a severe hit for companies that depend on the import of goods from China.
Increasing uncertainty in financial markets, in particular in the US stock market, forces investors to diversify their assets. One of the areas are the assets of the “shelter”, so-called “protective assets”. Most experts have already noted that cryptocurrencies begin to perform this function. Accordingly, increasing uncertainty in financial markets increases interest in cryptocurrencies.
It is also worth noting that an incredibly sharp increase in tariffs is forcing businesses to go into the “shadow”. In this case, we are talking about the function of cryptocurrency as a means of payment. Payments in cryptocurrency will help to avoid paying fees. As a result, the demand for BTC and other coins from the TOP-15 markedly increases.
XRP’s rapid growth from Ripple
The price of XRP token has shown a sharp rise over the last 24 hours, rising to 0.39. As it is known, the market of the most liquid altcoins traditionally follows the price of bitcoin, and this factor definitely cannot be excluded. But in this case, we see that the growth of XRP significantly exceeds the growth of BTC and BCH, which showed the highest rates of return even on Monday.
An additional growth driver for XRP could be the news that XRP became available for buying, selling, storing, and transacting by users of the main US platform Coinbase.com from New York State.
SEC delays the solution on Bitwise’s Bitcoin ETF
The application from Bitwise Asset Management on Bitcoin-ETF for the NYSE Arca Stock Exchange was filed in January 2019. The announcement of the official decision was scheduled for May 16, but the SEC once again delays it.
It is also necessary to remember that before May 21, the Commission should make a decision regarding the VanEck and SolidX application for changing the rules of the Chicago Board Options Exchange (CBOE) for Bitcoin-ETF listing.
Given the decision on Bitwise, there is a high probability of delaying the solution on VanEck and SolidX.
It is moderately negative for the cryptocurrency market and may weaken strong bullish impulse.