Published: July 26, 2018 8:58 a.m. ET A DataTrek survey indicates that it a herd mentality has been behind bitcoin’s recent price surge Digital currencies were trading higher early Thursday in New York, with bitcoin, the worlds most prominent digital currency, on track to avoid a back-to-back skid—something it hasn’t done in two weeks. A single bitcoin

BTCUSD, +0.38%

 was last valued at $8,287.42, up 1.3% since Wednesday at 5 p.m. Eastern Time on the Krakan cryptocurrency exchange.

Broad-based gains has pushed the total value of all cryptocurrencies to a fresh six-week high of $304 billion, according to data from Coinmarketcap. Industry participants believe bitcoin’s resurgence has been a function of positive market factors, including a renewed focus around a potential bitcoin-related ETF, which could underpin fresh moves higher in the asset.

An improved technical outlook around bitcoin, which has pierced several technical milestones in its 40% surge from the June 24 low, has underpinned recent optimism. However, according to a recent survey, more than half (52%) of the respondents said they believe crowd psychology is the main driver of the price of the No.

1 digital currency. “To our thinking, this was the single most surprising response of the whole survey,” wrote Nicholas Colas, co-founder of DataTrek Research.

“Finance professionals make their livings by analyzing asset values through the lens of fundamental/quantifiable factors. That more than half of respondents believe valuation in the crypto space is “purely a function of crowd psychology” is refreshing in its honesty.” Just 15% said the price of bitcoin was a function of growing usage. Read more from…

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