By CCN: Another day, another new high for the bitcoin price. Bitcoin is currently trading at nearly $8,300, which according to CoinMarketCap data is a new 2019 high for the biggest cryptocurrency. On Coinbase, the BTC price already attained $8,300 though it has pulled back slightly. While it’s not the first time that the bitcoin price has surpassed this level historically, the market has stronger fundamentals fueling the gains this time around.
The excitement in the crypto community is palpable. Gemini Co-Founder Tyler Winklevoss noted that “breaking 8k this time feels a lot different than the last time.”
Bitcoin breaking 8k this time feels lot different than the last time. So much progress has been made since then and it’s only the bottom of the first inning! 🚀👍
— Tyler Winklevoss (@tylerwinklevoss) May 16, 2019
Trader and analyst Luke Martin noted that bitcoin reaching new highs “never gets old.”
$BTC making new 2019 highs. It could happen every day for the rest of the year and it would never get old.
— Luke Martin (@VentureCoinist) May 16, 2019
Finally! Bitcoin Price Is Trading on Good News
One of the frustrating themes of 2018 was that the BTC price ignored signs that the industry was becoming stronger as developers kept “buidling.” 2019 is a completely different story. Now that bitcoin is barreling toward $10,000, Fundstrat’s Tom Lee suggested that it is more likely to capture the attention of traditional investors outside of the crypto space. He told CNBC:
“That’s really important because bringing in that new interest into managed crypto can really push bitcoin to its all-time high.”
#Bitcoin YTD >100%
If a family office/institutional investor had 2% #crypto allocation (tiny)…
Bitcoin would have added 200bp to the overall portfolio return.
STAGGERING (only first 5 months of 2019). Another argument for Crypto to be embraced as an #asset class https://t.co/PTnHBQIwmv
— Thomas Lee (@fundstrat) May 13, 2019
No Shortage of Catalysts
There are plenty of reasons for the bitcoin bulls to be out in full force. As Fundstrat’s Lee told CNBC, the BTC price has been rising steadily since November 2018. But in recent weeks, the gains have become “more parabolic” in nature. The stars have aligned for the bitcoin price for several reasons, not the least of which involves geopolitical tensions unfolding between the U.S. and China. Not only have these conditions made bitcoin look better than ever to investors because of its uncorrelated nature to stocks, but bitcoin has become the “safe haven” investment, according to Morgan Creek Digital Co-Founder Anthony Pompliano. He tweeted:
“JPMorgan is telling people that the trade war between the U.S. and China could boost safe-haven currencies. Bitcoin is the best safe haven currency in the world. Nervous about global chaos? Buy the strongest non-sovereign currency.”
JP Morgan is telling people that the trade war between the US and China could boost safe haven currencies.
Bitcoin is the best safe haven currency in the world.
Nervous about global chaos??
Buy the strongest non-sovereign currency.
— Pomp 🌪 (@APompliano) May 15, 2019
There’s no shortage of catalysts, really. Regulated BTC futures exchange Bakkt has provided greater clarity on its imminent launch, which will likely unlock institutional capital from the sidelines. And crypto exchange Gemini has thrust bitcoin into the spotlight by making it possible for thousands of merchants to accept the cryptocurrency as a form of payment. While investors may be grappling with sell in May and going away in the stock market, bitcoin it seems is just getting started.