The rate of bitcoin has gained support from retail buyers
The bulls once again supported the bitcoin exchange rate, not allowing to fall below $9,700. At the beginning of the working week, the Bitcoin price gained new momentum for growth at the expense of news from Bakkt that still received permission to launch the deliverable futures. Thanks to the support of the news background, BTC is back above the 50-day moving average. On Tuesday morning it traded above $10,800, demonstrating in recent days an increase of nearly 3% and adding 15% to the lows of last Thursday.
Actions of institutional investors who will come to the fore. Recently it became known that the largest American crypto currency exchange bought custodial service Xapo. Thus, Coinbase, becomes largest institutional crypto-custodian in the sector.
Coinbase CEO Brian Armstrong said that each week, institutional investors are investing $200 – $400 million in scriptactive. Basically, we are talking about bitcoin, which also is confirmed by the price dynamics of cryptocurrency that feel noticeably worse.
Index Crypto Fear & Greed shows a rebound from the extreme values of fear, which pointed to a great opportunity to purchase the asset. Last week, the indicator reached a value of 11, while now it is approaching 40. The higher the value, the stronger the demand for the asset and the closer the time of correction of the exchange rate of bitcoin.
The difficulty of bitcoin mining is now at historical highs 10.1835 T. For the last 3 months it grew by almost 52%. For comparison, at the time reaching historic highs price of $20,000 in December 2017, the difficulty of mining was five times lower. Then low scalability has led to huge logs of uncommitted transactions. Now the market is ready to offer a significantly greater margin of hashing power.
The hype around Libra noticeably subsided, however, the project has created some momentum for the market. Recently it became known that already Binance plan to run the Venus project, in which will be created regional stabilini, Vietnam tied to national currencies. It is likely that success in this direction do not expect a giant Corporation that simply has to fully comply with the stringent requirements of US regulators, and the flexible FINTECH company, which will have the ability to look for a more lenient jurisdiction.
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