It certainly has been a positive week for the crypto market.
On Wednesday the market has continued to push higher as traders return to cryptocurrencies in their droves.
This has led to the value of the entire market rising almost 9% since this time yesterday to US$297 billion according to Coin Market Cap.
There have been strong increases across the board today. Highlights include Ripple (XRP) climbing 8.5%, Bitcoin Cash (BCH) rising 9.8%, and the EOS (EOS) price rocketing 14% higher.
But the headlines will go to crypto giant Bitcoin (BTC). The world’s largest cryptocurrency has risen almost 11% since this time yesterday to US$7,436.97 per coin.
This gain has added US$12.4 billion to the market capitalisation of Bitcoin, taking it up to US$127.6 billion.
It also means that Bitcoin has now risen an impressive 18% since the start of the week.
Why are Bitcoin and the rest of the market racing higher?
There are a few reasons why crypto traders have become bullish again.
The first is news that exchange traded fund giant BlackRock is looking into cryptocurrencies and blockchain. While there is no confirmation that BlackRock has plans to launch a crypto ETF, some traders appear optimistic that one is coming.
Considering BlackRock manages over US$6 trillion worth of assets, a potential launch could attract significant funds to the crypto market. This could support or even lift prices.
In addition to this, the finance world’s toughest exam is about to get a little bit harder. According to the Bloomberg, the CFA Institute intends to add topics on cryptocurrencies and blockchain to its Level I and II curriculums for the first time in 2019. This may give traders confidence that crypto assets are more than a fad and here to stay.
Furthermore, CoinBase recently advised that it plans to add five new alt coins to its trading platform. These include Cardano (ADA) and Stellar (XLM). Unsurprisingly, these two coins have been amongst the best performers this week.
Should you buy Bitcoin?
While sentiment is increasingly positive at the moment, there’s no guarantee that it will last.
I’m optimistic that Bitcoin could make a successful run for the US$8,000 level this month, but I’m not in a rush to part with any hard-earned money. Instead, I’ll be watching on from the safety of the sidelines.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.