18 Jul Bitcoin rally may pull cryptocurrencies higher; Bannon’s “deplorables” coin
Bitcoin has rallied strongly above $7400 this week and has the potential to increase further before the market assesses which direction it will go.
Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, says bitcoin’s recent price rally could give the overall cryptocurrency market a boost.
In a CNBC TV interview, Schlossberg says bitcoin is trading more on technical rather than fundamental considerations.
“The short going rally has the potential to go even further, perhaps all the way up to the $8000 level where there is a lot more resistance,” Schlossberg says.
Why did bitcoin move up?
Schlossberg says there are several reasons why bitcoin went up this week.
VC firm Blackrock has expressed strong interest in blockchain. As well, investor Steve Cohen made a large investment in a major cryptocurrency fund, so Schlossberg says it remains to be seen if the rally will build on these trends.
“For now, though, it remains very much a technical bounce,” he added.
Bitcoin asset class is here to stay
Meanwhile, Digital Currency Group’s Barry Silbert has made a substantial bitcoin investment at what he believes is the market bottom for this year.
“I think we’ve probably hit the bottom for the year. I actually put some money into bitcoin last week,” he said at the Delivering Alpha Conference in New York on Wednesday. “As an asset class, it is here to stay … I’m 100% confident a decentralized, non-fiat form of money is here to stay,” he told CNBC.
Silbert’s investments include more than 120 companies in 30 countries including Coinbase, Ripple, BitPay, and Circle.
A Steve Bannon “deplorables” coin?
Could a Steve Bannon coin be coming soon? The former Trump advisor says he owns bitcoin and is working on his own cryptocurrency.
“I like bitcoin. I own bitcoin,” Bannon said during a CNBC interview at the Delivering Alpha conference in New York.
While Bannon says cryptocurrencies are the future, he said most recent ICOs “have been disastrous.”
“Too many investors get blown out by things that aren’t thought through,” Bannon added.
Time will tell whether the market is ready for his proposed “deplorables” coin among the other occasional cryptocurrency disasters.
In the meantime, market watchers seem to be feeling more bullish on bitcoin this week.