PUMP: 5 Reasons Why Bitcoin Is Pumping And Alt-Coins Are Playing Along

Today’s price movement in the crypto markets is turning sentiment from un-bear-ably negative to slightly bullish. Bitcoin pressed beyond resistance levels and has managed a nearly 11% gain on the day (s0 far). And just as everyone suspected, alt-coins followed suit right along with the crypto leader, $BTC.

So what has driven the last week of price action and today’s move in particular? Five specific items stick out and can be matched to both sentiment and technicals as Bitcoin busted out.

 

5. BlackRock leaks info that they’ve established a crypto working group. “And now, as Financial News reports, the world’s largest asset manager will examine whether the manager of $6.3 trillion of assets should invest in Bitcoin futures.  It is also reportedly reviewing what competitors are doing with cryptocurrencies and how it would affect its business.”

“Notably, the formation of the team marks a change for the company after CEO Larry Fink said in October cryptocurrencies are a speculative platform in Asia and heavily used for money laundering. He has also said Bitcoin and other cryptocurrencies were “far from” being an opportunity for institutional investors, and none of BlackRock’s clients wanted to invest in it, according to Financial News.” Bullish.

4. Bloomberg posts an exclusive as the SEC approves Coinbase’s move into the broker-dealer space, allowing the popular crypto exchange to list coins that may be classified as securities. 

“Coinbase Inc., one of the most popular cryptocurrency platforms, said it got the green light from U.S. watchdogs to move forward with a trio of acquisitions that will allow it to become one of the first federally regulated venues for trading digital coins deemed to be securities.”

“The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority approved Coinbase’s purchase of Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC, a company spokesman said Monday. The acquisitions enable the firm to offer so-called security tokens and also place the businesses under federal oversight. Coinbase has primarily been regulated by a patchwork of state authorities.”

From a competitive and strategic standpoint, this gives Coinbase the ability to begin outrunning most of its competitors. The majority of exchanges within and outside of the US have yet to make a push into the broker-dealer space for fear or regulatory scrutiny. This designation puts Coinbase squarely into the rarified air of Gemini and Circle, as more legitimate financial institutions. Both of those firms have also applied for ‘broker-dealer’ designations and licensing.

3. Robinhood announces its intention to list several more coins on its fast-growing, commission-free platform.

And now this – Robinhood has announced even more crypto brands have been added for crypto enthusiasts to trade.

The company said in an announcement on Thursday that Litecoin and Bitcoin Cash have been added for Robinhood Crypto users following strong demand from customers for crypto assets beyond the current options of bitcoin and ethereum.

As part of the announcement, Robinhood also claimed it now has over 5 million users on the platform following the expansion of its crypto trading service to 17 U.S. states.

2. Billionaires continue to plow their personal assets into cryptocurrencies in the midst of a bear market; specifically, Steven Cohen. “The investment was made through his Cohen Private Ventures, said the person, who asked not to be named because the information is private. The hedge fund, Autonomous Partners, was started last year by Arianna Simpson, an early advocate of cryptocurrencies. It has also secured investments from Union Square Ventures, Coinbase Inc. Chief Executive Officer Brian Armstrong and Craft Ventures Co-Founder David Sacks, Simpson said in an interview Thursday.”

In other words, this isn’t some sort of committee decision executed after quarterly allocations were made within Cohen’s organization. This was Cohen making a personal commitment to the crypto space and attempting to do it at just the right time so as to maximize his personal returns.

1. Facebook, Mt. Gox, and Facebook.

Internal crypto moves from Facebook – “The social media giant named Evan Cheng as its first Director of Engineering, Blockchain, TechCrunch reported. Cheng has been part of Facebook since 2015, according to his personal LinkedIn profile. A closer look at his background reveals his long-term experience in the field of computer engineering. Interestingly enough, before getting to his new position, he served as the Director of Engineering, Programming Languages & Runtimes at the company.”

Mt. Gox Court Filing Stops Massive Bitcoin Dumps – “The issue that has most plagued the crypto markets, via Mt. Gox, has been the massive selling pressure brought about by the now-defunct exchange as it dumped massive amounts of $BTC on the markets to satisfy the terms of its bankruptcy mandates. Per a court filing today it looks like that is about to end, and the final ‘distribution’ process will happen ‘in-kind’ via a process known as Civil Rehabilitation.”

Facebook removes the ban on crypto related ads – “Today’s announcement says the company has been looking into the best way of “refining” its blanket ban on cryptocurrency-related advertising “over the last few months,” in order to “allow some ads while also working to ensure that they’re safe. Facebook’s revised “prohibited products and services policy” now states: “Starting June 26, we’ll […] allow ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings.”

**Two more points of reference have manifested themselves: Bitcoin ETF filings that seem to be assured approval in short order, and the naming of a new Goldman Sachs CEO who just so happens to be keen on Bitcoin and cryptos in general.

Collectively these announcements occurred inside of 20 days. The first three on this list – in the last six. Each of them providing a floor to the crypto bear market and signaling an institutional push that finally broke technical resistance levels that have held for weeks.

If you were looking for reasons to stay long as $BTC (and the alts) begin to move – there you have them.