Bitcoin has pumped massively in the last couple of hours in its first notable rally of the year 2019, with the price of the coin at the time of writing 7.38% over yesterday’s price but, it had shot up by a total of 8.53% reaching a maximum of $3695.
Brian Stutland, the CIO/CCO at Equity Armor Investments spoke to CNBC about Bitcoin’s first rally of 2019. Stutland said:
“I think it could be a beginning of a bigger rally, because when you look at the fact that if we move Bitcoin into an ETF, now portfolio managers that are out there can actually allocate to Bitcoin in their models and put that some sort of weighting in their holdings in terms of what people want to hold in terms of investment value.”
He continued by stating that demand for the cryptocurrency is coming from the aforementioned point and that it will drive the price even more. Stutland added that this rally should follow through to see some significant rally.
Further, he said that the coin could have a rally if the volatility of Bitcoin contracts around the $3,500 range and even bottom out there, then shoot up and preferably above the $4,000 range.
Moreover, SEC Chairman had recently announced that the Bitcoin ETF would eventually be announced which, many in the community are speculating to be the reason for the short-term rally.
Jim Iuorio, Managing Director, TJM Institutional Services, also added his perspective to the coin’s rally, he said:
“There’s been a lot of shorts in the market since November 14, when it broke through that $6,000 level and shorts that aren’t getting any satisfaction eventually get out, they got the news today, so yes, the move is exaggerated by the short squeeze, I believe that it’s got to get to $4,000 level.”
On the other hand, as per the recent reports by TradeBlock, Bitcoin Futures’ trading volume has been on the decline since the summer of 2018. In fact, the volumes of CBOE and CME for Bitcoin Futures have reached their lowest since their launch.