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Why Cryptos Went Crazy This Weekend?

Why Cryptos Went Crazy This Weekend?

This weekend was all about crypto craziness, and we saw some speculators shaking out of the markets, and bargain hunters adding more positions to their portfolio. Bitcoin believers know that it is absolutely crazy to sell Bitcoin during a bull rally.

The reason that we saw Bitcoin prices plunge over $10K for a brief moment was once again because of regulatory issues that cryptos have faced since day one. Having said that, the crypto landscape has improved much more today; it is no longer the same landscape as 2017 or 2015.

The majority of crypto firms want to make sure that their compliance process is top-notch because they have seen a clear road map of success, laid out by Coinbase. By being compliant, they are likely to attract more capital and promote new technologies.

Another fact is that institutional buying power is still much bigger than retail money, and we have only seen a small fraction of that money.

Coinbase’s IPO has increased the odds of a Bitcoin ETF becoming a reality, and it is only a matter of time before we will get that news. Remember, market players have been waiting for this news for over three years now, and a Bitcoin ETF will be a new beginning where we could see an influx of institutional money pouring in.

The most exciting part among investors and traders is that Bitcoin, unlike Fiat money, has limited supply, so there will always be this fear of missing out because of of limited supply.

Although it is important to keep in mind that any unfavourable statement from prominent lawmakers or official agencies still remains a major threat. Yes, the Bitcoin landscape has indeed changed. But after this weekend, it is clear that regulatory concerns are still the single most important threat for crypto assets, no matter how much participation or interest we see from the most regulated institutions such as Goldman Sachs.

Gold

In terms of commodities markets, gold prices have started the week on a positive note, and we see traders picking up momentum where they left off last week.

Last Friday, gold prices recorded the best week in nearly four months, and a lot of those moves were mainly because of the Fed’s dovish tone. If we look at the US Treasury yields, we see the same theme that we can see for the dollar index, which is a move to the downside.

Given the fact that gold is trading above the $1,750 price level, if the weakness continues in the dollar index, we could easily see the gold price topping above the $1,800 price level.

UK

Over in the UK, coronavirus restrictions continue to ease off, and there are still a lot of concerns among investors that coronavirus cases will very soon begin to tick much higher. That is because all the major and smaller restaurants are excessively full, and there is little to no adhering of rules in busy areas as people are enjoying the sunshine in public places after being in the second lockdown for nearly three months.

Boris Johnson, the British Prime Minister, has said that the current measure of easing of lockdown is irreversible. However, if cases begin to rise sharply, a highly likely scenario, he will be faced with no choice but to do what is necessary. The only hope which everyone is banking on is the coronavirus vaccine, and we are miles away from reaching that milestone.

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