Bitcoin (BTC) has almost hit the résistance level of $10,000 in today’s trading. The market trends are steadily moving in favor of bulls following a horrible crash in the last couple of weeks.
The main reason for this is said to be South Korea’s retraction from it’s earlier stance; authorities had previously threatened to forbid cryptocurrency trading by imposing harder regulations. It’s newly adopted more lenient approach to crypto trading has sparked a broader market rally in prices as trader sentiments are now positive again.
Dan Morehead, who bought his first bitcoin for around $72 said, “Bitcoin should return to peak levels in the next couple of weeks and will continue growing from there.”
Thomas Glucksmann has also presented his bullish outlook; expecting bitcoin price to rebound to $50,000 by the end of this year.
Bitcoin Hits $10k – The South Korean Phenomenon
South Korea has helped bears in toppling crypto markets in the last few months. It had adopted a strict tone for digital currencies and started investigating domestic exchanges.
But now it has changed its stance; South Korea, the third largest cryptocurrency country, now plans to support digital currencies. What’s going on?
Hong Nam-Ki, minister of the Office for Government Policy said: “We were focused on making crypto trading transparent (as opposed to banning crypto exchanges).”
Investors have always been responding sharply to any news from South Korea, because of it’s large market capitalization and the prices rose sharply after South Korean changed its mind.
Ripple (XRP) is trading close to $1.12, while Litecoin (LTC) soared more than 10% in early trading on Thursday.
Regulatory Actions Could Facilitate the Rally
In recent weeks, the top two U.S. regulators have drafted new regulatory actions that will support virtual currencies – in an effort to subdue any illegal activity been facilitated through the use of digital currencies.
Singapore and several other countries have also announced their support for bitcoin and other currencies.
Market sentiments are moving in support of regulating cryptocurrencies. Analysts and traders predict that regulations will help improve trader confidence, and will also set the path for the entrance of institutional capital. Is it exciting times for the coin?
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