Bitcoin could be set for a comeback after climbing 10 percent over the last 24 hours to hit a high of $7,523 in the early hours on Wednesday. The compounded crypto market capitalization is nearing the $300 bln mark, last seen over a month ago, on June 12, 2018.
The price has risen almost 10% in just one hour following a raft of positive news for bitcoin and cryptocurrencies. As a result of the near $600 price jump, bitcoin added some $9 billion to its market cap in a matter of minutes.
Other major cryptocurrencies are following suit – Ether (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH) have all added between 5% and 10% over the last 24 hours, according to CoinMarketCap data.
Among the top 10 cryptocurrencies by market capitalization Stellar Lumens (XLM) and Cardano (ADA) are the biggest gainers – 20% and 15% respectively.
At press time some correction is being observed though with Bitcoin changing hands at $7350 on Bitstamp.
A spectacular recovery on the cryptocurrency market has been engineered by a combination of factors that prove strong institutional interest to this class of assets. A wide range of companies – from large hedge funds and exchanges to tech giants – announce their involvement in cryptos and start exploring the benefits of new technologies.
International financial watchdog, the Financial Stability Board (FSB), yesterday released a report that found Bitcoin and cryptocurrencies do not currently pose a material risk to the global financial system.
Tuesday also saw the appointment of David Solomon as the new chief executive of US investment bank Goldman Sachs, who’s currently the firm’s current chief operating officer. According to Solomon, the organization is exploring cryptocurrency trades beyond the publicly-traded derivatives that it already handles.
“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously,” said Solomon in an interview with Bloomberg. “We’re listening to our clients and trying to help our clients as they’re exploring those things too.”
In response to a question about digital currencies David Solomon said Goldman Sachs must “evolve its business and adapt to the environment.”