Four Reasons to Buy the Rumor and Sell the News with (BTC)

Earlier in the week bitcoin has been blamed for the Russian hack which effected the US election, nevertheless momentum has held going into the week. Throughout the past few weeks there has been more indications that the gateways to adoption are beginning to open. Not only in the US, but global impact may be on the verge of emergence.

1. South Korean regulators have approved the legitimacy of 12 out of 14 cryptocurrency exchanges. The approved exchanges include Bithumb, UPbit, Gopax, OKCoin Korea, Korbit, Coineone, CoinZest, CPDAXX, HanbitKor, Huobi Korea, and NeoFrame, and DexKor. However, South Korean investors are still skeptical of crypto exchange Bithumb, which experienced a hack of over $40 million — $16 million earlier in June. Overall, the added exchanges will allow regulators to better facilitate the growth of the emerging asset class by providing investors with a safe zone to buy crypto.
2. Ripple wants to give away 2 billion XRP (currently $880M) to the citizens of India to help stimulate the rate of global XRP adoption. In fact, Ripple has already formed partnerships with some of India’s largest banks. When questioned about the potential difficulties of distributing 2 billion XRP, Ripple Vice President Asheesh Birla commented,

“We realised that if you get the top three banks in India onto Ripple, you get 80 percent of the market share. And then we looked at – where’s the future? And so we realised in the next five years, one billion people will become banked in India, but they’ll be banked through their phone. So then we started targeting mobile phone providers and telcos. And so now, I think that in our pipeline we have probably 50 percent of the market in India, either integrated onto Ripple or in the deal, in the sort of pipeline to be signed to India.”

With a population of 1.3 billion, India has the potential to have a massive influence on the adoption of cryptocurrency. India’s banking system has most likely prepared for a mass influx of XRP because they expect citizens to use the money. Otherwise the implementation of XRP into India’s economy would be like giving Mexican Pesos to Europeans and expecting them to use the currency. If major banks in India are making these partnerships with Ripple that means their economy is gradually preparing for the circulation of XRP into mainstream transactions. Not to mention the potential value of 2 billion XRP, which when XRP was at its all-time high of around $3.00, equaled 7 billion USD.”

3. A bitcoin ETF may be passed on August 10th. A bitcoin ETF would allow another safe gateway for institutional money to gain exposure to bitcoin and other cryptocurrencies. An approval of a bitcoin ETF would presumably open the door for future crypto asset related ETFs to be passed allowing further exposure into the emerging asset class. Although bitcoin ETFs have been declined before, the circumstances are favorable for an upcoming approval. Coinbase recently announced its implementation of its Custodial services allowing large institutional investors to enter the space safely. Billionaires have come out recently exclaiming their interest in crypto and their desire to take long positions. Therefore, billionaires and institutional investors are not jumping into a leaking pool which will break their legs upon entry. Institutional money is starting to believe in the future potential of bitcoin and other cryptoassets. In addition, CMOE bitcoin futures have been operational since December which has further legitimized bitcoin and cryptocurrencies as an emerging asset class. While regulators have the option to postpone the ETF decision, the anticipation leading up to the event is likely to cause a temporary price increase.
4. While new developments and positive news are promising, it is also nice to see the technical fundamentals are inline for a probable bitcoin price increase. Fibonacci levels indicate that bitcoin hit a critical level of 61.8% on July 14th. Historically, the price of bitcoin has increased two different times after declining to the 61.8% Fibonacci level. This happened during the correction of September 2017 and the correction of January 2018. Bitcoin faces strong points of resistance at $6,400 and a strong support level of around $6100 – $6000. According to the Fibonacci extensions, it was probable that Bitcoin would break $6,400 earlier this week and continue to rise to the $6,700 resistance level. However, if BTC somehow declines lower than the support level of $6,000, it is probable that bitcoin could reach its lowest price of 2018.

As of now, it seems as if the stars are alining for a temporary price surge in anticipation of the bitcoin ETF.  Nevertheless, in the cryptocurrency world it is likely that many will be seeking to take profits if bitcoin breaks $7,000 or even $8,000. That being said, this is just my personal opinion and not financial advice.

Disclaimer: This is not financial advice. Please do your own research and make objective decisions. This article is intended to educate readers about favorable conditions bitcoin is currently experiencing. The author of the article owns cryptocurrency.