Bitcoin gained 1.36% earlier today rising from $442 to $448 in just one hour right after Glenn Hutchins, a Federal Reserve Bank of New York board member and investor, came forth with bullish news about Bitcoin and the BlockChain technology. In his speech he drew a bold parallel between Bitcoin and the Internet and, among other things, mentioned that he has bought Bitcoin himself and is currently investing in various Bitcoin companies.
We didn’t reach $500… yet
In the last weeks of April there was a lot of fuss on Bitcointalk about the possibility of the price reaching a whopping $500 USD mark on or before May 1’st, but as we all now know, this somewhat feasible dream was instead met with a steady two-day price decline on the 27th and 28th of April where the value of Bitcoin fell sharply a total of -7,25%.
Impact of bullish news
Glenn Hutchins is a man to be taken seriously and we have already witnessed that the first wave of bulls have returned, albeit cautiously for now.
When a board member of a Federal Reserve Bank of New York comes out in the open and says that “hey, I’ve bought Bitcoin myself and I will start investing in Bitcoin companies“, it’s not that far-fetched to think that at any moment now the herd will follow.
$500 in May or early June?
This, along with the fact that an event called “the halving” is right around the corner, leads me to believe that $500 in May is a very strong possibility especially because in the last few days the price has fallen just enough for it to look delicious again for the bulls.
After all, Bitcoin is an asset more closely controlled by the fundamentals than anything I’ve seen before. It’s true that technical analysis works to a certain degree, but every time news like this comes out, Bitcoin simply goes nuts!
It’s like a feather in the wind that’s blowing from many different directions and that being said, I believe this month and the next will be a very interesting ride to either simply observe or be a part of directly.