Much of the cryptocurrency community was excited and confused in equal measure after Bitcoin [BTC] crossed the $8000 mark. The majority of the community could not put their head around a reason for this consistent pump, with many analysts and traders stating that there were no fundamental factors affecting the market at the moment.
However, Mike Novogratz, CEO of Galaxy Digital Holdings, pointed out a few developments that might have had a hand in the current valuation spike.
Speaking to CNBC, Novogratz cited Microsoft’s big announcement where they mentioned the initiation of an identity solution on top of the Bitcoin blockchain. Further, Facebook also recently entered the picture after it announced the removal of the ban on cryptocurrency and blockchain-related ads.
These were two of the biggest companies “credentializing” the validity of blockchain and crypto in the market, which inadvertently had an effect on the prices of Bitcoin [BTC].
He added that the initial boom of 2016-2017 was 98 percent based around retail-driven investments, but in the current price hike, some major institutions were prominent as many had started to buy crypto.
One of the other speculated reasons behind Bitcoin’s [BTC] surge was the fact that the market had been tolerant of negative news. The Tether-Bitfinex fiasco hardly affected the price of Bitcoin [BTC], while it still continued to consolidate higher, without any major pullback.