Bitcoin makes another win on Wednesday, extending its rise above $6,000 for the first time in two weeks. The cryptocurrency moves to 18-month highs as investors enter a buying frenzy ahead of a ruling on bitcoin exchange-traded fund (ETF) by the US regulator. More importantly, it appears that Bitcoin is set to surpass Ethereum’s market capitalisation shortly with its record high price of $224 billion. At current rates Bitcoin will become one of the largest cryptocurrencies by market cap surpassing Ripple and Litecoin with ease. Regulatory approvals for bitcoin ETFs are expected to be announced on August 16 by the US Securities and Exchange Commission (SEC). The decision of the SEC on approving ETFs will be a positive sign for cryptocurrency markets at large and will bring in more institutional investors to the space.
The best performing digital coin of Wednesday’s trading session is none other than Cardano (ADA), rising 16 percent as its biggest daily gain since January 26. Cardano is currently trading near $0.33, with a market cap of nearly $20 billion. Investors are speculating that it may get add to Coincheck soon, which boost the trading volume and price of ADA in the near future. The overall cryptocurrency market is trading at over $242 billion, with a daily trade volume of $12 billion. The top ten digital coins are all in the green with gains over 4 percent.
One of the major factors
What could drive prices higher is the growing adoption of Bitcoin by institutional investors and governments. Recently, Citigroup has announced that it would begin testing Bitcoin payment for some of its clients through a partnership with Nasdaq. Furthermore, NYSE owner Intercontinental Exchange (ICE) along with Microsoft and Starbucks had revealed plans to form Bakkt which will create an open and regulated digital asset ecosystem that will permit consumers and institutions to buy, sell, store and spend cryptocurrencies on the global network.
In other news, Binance, the largest crypto exchange by volume has announced plans to launch a decentralized exchange (DEX) which will allow users to trade cryptocurrencies directly from their own wallets.
Altcoins follow the leader: Bitcoin is back up above $6,000
The combined value of all cryptocurrencies has increased by more than $10 billion in two days after plunging below $200 billion following a major trading session on August 7. The market cap of the industry is currently sitting at $240 billion with a daily trading volume of $11 billion. Bitcoin is trading at $6,343 representing growth in the last 24 hours of 2.73 percent. Other major coins such as ETH, XRP, EOS and LTC are also trading with gains of 4 percent to 6 percent.
Long-term investors are buying back into the market while traders are content with the recent minor price fluctuations. As of now the cryptocurrency market is in deep correction phase, which is a positive sign that more buyers would be entering the space soon for future rallies.
Cardano (ADA) registering its highest gain since January
The price of Cardano (ADA) has broken out from its current resistance level at $0.285 and went up to $0.3399 representing a gain of 16 percent in a single day. It is currently the third largest cryptocurrency by market cap, with a valuation of $17.27 billion, trading at $0.33 and a daily trade volume of $761 million. The ADA/USD buying frenzy continued yesterday as the cryptocurrency went up to its highest gain since early January when it recorded a high of $0.4091. The Cardano Foundation has announce that two new members were add to their team in order to increase institutional and government engagement which could be one of the factors driving up prices and increasing adoption rates. It is currently trading above the 100-day moving average (MA) after breaking out from its falling wedge pattern, which might indicate further upside momentum in the short-term.