After going through many dramatic phases ever since the year started, with Bitcoin price finally hitting the rock bottom, now looks like it’s having it’s taste of fortune. The Bitcoin has been rallying up since the past few days steadily. The biggest cryptocurrency climbed as much as 5.4% Tuesday to $9,412, the highest it has been since March.
Now Crypto Traders and users are turning back to bitcoin and are seeing the ray of hope and earlier predictions materialize as the bitcoin price is increasing again.
The renewed faith in Bitcoin can be attributed to several reasons, the top 3 being:
1. REGULATORY CLARITY
The regulations on Bitcoin across the world are now being passed explicitly and there’s only a little room for ambiguity. This helps to encourage big-money, institutional investors to get involved in the space. Fran Strajnar, CEO of Brave New Coin, explained to Forbes:
“Bitcoin is trading upwards for a number of reasons. The U.S. is stepping in to regulate security tokens instead of commodity assets (utility) and we are seeing major value investors stepping into buy as a result […] As the Soros’ and the Rockefellers’ of the world move into this ecosystem, this asset class is legitimized and trending in an extremely positive direction.”
In fact in April, Soros Fund Management’s Adam Fisher has received internal approval to trade digital currencies — which has since sparked Bitcoin’s full-blown recovery.
2. Institutional Interest in Bitcoin
Now the small investors are also encouraged enough to take their chances at trading bitcoin with the spike in the institutional interest. Explained Eiland Glover, CEO of blockchain platform Kowala,
“Word is getting out that traditional financial industry players are preparing to enter the crypto trading markets soon. The entrance (of new financial firms) promises to provide much higher levels of liquidity along with a tsunami of new money…driving today’s prices higher.”
Infact, according to a survey conducted by Caddle in January this year, the reports explicitly show that about 10% of the Canadians who participated in the survey are quite likely to invest in Cryptocurrencies this year.
3. THE MARKET IS MATURING
Now the crypto marketing is maturing steadily with time because of which investors are starting to gain a better understanding of where we are currently, and where we are headed. Rob Viglione, co-founder of ZenCash, told Forbes:
“This 50-day high is a solid indicator that people are slowly re-entering the market. Increased regulatory scrutiny globally has weighed down on crypto prices over the last quarter, but the space has remained relatively stable over the last several weeks. People are starting to gain a more nuanced understanding of the long-term potential of blockchain technology. It also helps that major investors are becoming more bullish…that bolsters the confidence of the retail investor.”
With all the 3 causes mentioned above, the Bitcoin is now going to give a serious run to other cryptocurrencies in the market. However, it is yet to be seen how much the Bitcoin price soars up to by the end of this year.
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