Bitcoin bounced back within days of headlines declaring it dead. Major outlets had called the bubble burst, but the market turned course last week. Bitcoin now trades around $6,500, climbing from late
Bitcoin bounced back within days of headlines declaring it dead. Major outlets had called the bubble burst, but the market turned course last week. Bitcoin now trades around $6,500, climbing from late-June lows.
Observers pinpoint Coinbase's new institutional custody service as a possible driver. The product launched to provide institutions across the US and European markets with secure asset storage. Not everyone's convinced. Mati Greenspan, an analyst at eToro, expressed skepticism: "As we know, markets don't move on news. They move on volumes." Greenspan dug into the timing and found volume surges in US dollars and Japanese yen "just before the opening bell on Wall Street." He couldn't nail down how much of Bitcoin's move came from the Coinbase announcement versus coincidence.
One puzzle piece caught his attention. NEO, called China's answer to Ethereum, moved alongside Bitcoin without clear explanation. The token gained 4% in 24 hours and trades at $37.05, up from the $27.53 close at month's end.
NEO enables developers to build decentralized applications the way Ethereum does. Its open-source community works on new projects for the platform. Some see NEO's blockchain as a home for decentralized exchanges, a tool the cryptocurrency world has wanted since it matches decentralization values. NEO's partner project Ontology launched its own mainnet last weekend. The launch benefits Ontology and may provide tailwinds for NEO as well.
China's government backing for blockchain could matter long-term. The nation has funded blockchain research initiatives, and NEO ranks among China's most developed smart contracts platforms. That positioning gives NEO upside if policy makers continue supporting the sector.
The bounce extends beyond Bitcoin and NEO. Cardano gained over 6% in the same stretch. Smaller coins by market cap also moved into green territory, with many posting gains between 0 and 9%.
