By Jacqueline Corba
Cryptocurrencies are rebounding after several weeks of sell-offs and volatility.
But is this rally strong enough to bring Bitcoin back to its all-time highs? Many are waiting for institutional investors on the sidelines to play ball.
"It's a very fragile basis of confidence," Jonny Dubowsky, cyberneticist and My Personal Therapeutics CTO, said on Cheddar's The Crypto Craze Thursday. Dubowsky said he's waiting for institutional investors to enter the space before seeing a robust rally from Bitcoin.
"I think once the institutional investors come back from summer break, we're not going to blast past $10,000. I think we're going to fight out this $7,000 to $10,000 range because we keep bumping into 20-day moving average, 50-day moving average and the Bollinger bands are indicating it is really hard to break through the ceiling. We really need some really breakthrough moments," said Dubowsky.
Bitcoin rose nearly 13 percent from its price of $5,900 last Friday and surged as high as $6,692 over the July 4th holiday.
Others are following suit. Four of the top five digital cryptocurrencies, including Ethereum, XRP, and EOS, are up over the course of this week. Bitcoin Cash is the only currency down this week.
One thing providing support is increased interest from institutional investors.
Coinbase just launched its first product for that market, dubbed Coinbase Custody. The exchange announced this week it recently accepted its first deposit and plans to roll out the service to clients ranging from crypto hedge funds and private equity firms to banks. The company already has 10 clients for this service, according to Bloomberg.
"Big money is coming into crypto," said Cheddar reporter Tanaya Macheel. "I think it's [Coinbase] realizing you can be a crypto-first company and still be a first mover when it comes to the institutional side."
Coinbase said it currently holds more than $20 billion in crypto assets.
For the full segment, click here.