Foreign exchange strategist and notorious Bitcoin bear Boris Schlossberg of BK Asset Management admitted this week on CNBC that BTC’s recent surge might have legs. By Friday (July 20) morning, Bitcoin was valued at $7,477, its best price in seven weeks.
Following Facebook’s about-turn on their cryptocurrency advertising ban earlier this month, Bitcoin enjoyed an initial rise in value, climbing from just under $6,000 to $6,750 in a matter of days. However, just as quickly, once again the “rot set in” and Bitcoin dropped like a stone, slumping to less than $6,200.
But as it turned out, all was far from lost; just as quickly as BTC had lost the bit of ground it had made, it regained it and then surpassed it, at one point rising by $700 in just two hours to hit an impressive $7,400 by Wednesday.
Bull vs Bear
While it’s way too early to start predicting that Bitcoin investors can begin looking to the future, the initial signs are good, with even one of the staunchest of Bitcoin “Bears” giving ground.
In cryptocurrency parlance, a Bull is someone who is super optimistic – often blindly so – about a crypto – usually Bitcoin – and its capacity for growth in value. A Bear on the other hand, is someone who is realistic and usually pessimistic, often about Bitcoin.
A stereotypical “Bitcoin Bear” is Boris Schlossberg of BK Asset Management. Normally ultra-cautious, even Schlossberg had to agree that this week’s surge in value by Bitcoin could “point to further gains.”
Watch this clip for a segment of what Boris Schlossberg told CNBC’s “Trading Nation” on Wednesday:
$700 In Two Hours?
Summarizing what has been an eventful few days, this is what we know:
After struggling for months simply to stay around the $6,000 level, Bitcoin was suddenly hit with a surge of market-induced electricity, sending sparks flying and its value soaring by almost 16%, at one stage gaining $700 in just two hours.
As Bitcoin’s rally appears to have been mostly based on technical drivers, the surge should continue for a while longer, and Bitcoin will likely climb above $8,000. However, it will find the resistance at that level to be much more serious.
Interestingly (some might say crucially), as Bitcoin was enjoying its surge, it was reported that asset management firm BlackRock was looking into the investment potential of blockchain technology and cryptocurrencies. BlackRock’s CEO Larry Fink would indeed confirmed the report:
“We are a big student of blockchain,” Fink said in an interview with Reuters. BlackRock are the world’s no.1 asset management company, with $6.3 trillion at their disposal, so their investment into the crypto market would be very welcome.
And so, the bottom line remains this: Blockchain technology needs to become more mainstream in order to gain that all-important corporate investment that will take it to the “next level,” but in a classic case of Catch-22, in order to become more mainstream, it needs a degree of corporate investment.