Once again the most controversial yet largest cryptocurrency by market cap, bitcoin, is on the rise as it crossed the $9,000 mark on February 14 and nears the $10,000 handle on February 15. According to our bitcoin price chart, it is the highest since February 1. The leading cryptocurrency is on a steady rise as the fear of strict actions by governments around the world on crypto markets subsides.
It is not just the crypto market, but the other financial markets have also slumped in the past few weeks. Bitcoin plunged by almost 70 percent from its all-time high of $20,000. However, its recovery from recent lows has encouraged long-term bitcoin proponents.
The one-day chart below shows that a reversal is under way according to the Renko candlestick charts. Bullish confirmation will be given if February 5’s price action closes higher than $9595.12 on the Bitstamp exchange, generating a buy signal (first green Renko after a series of red candles) indicating the upward trend is in play.
BTC-USD (1-day; Renko; Bitstamp)
South Korea the Reason for the Rise in Bitcoin’s Price
Nick Kirk, a data scientist at digital currency trading firm Cypher Capital, said, “Sentiment has changed. The Senate hearing a week ago was positive. That definitely helped to create a more optimistic view,”
Bitcoin value was hit badly over the past weeks as South Korea, a major crypto market, saw a lot of government investigations into the crypto space. However, at present, the fear of government crackdown on the market seems to have lessened. Currently, the crypto market seems to move more steadily and positively than it did back in January even though the South Korean government has not ruled out the option of an outright ban on cryptocurrency trading.
South Korean traders have actively opposed cryptocurrency regulations. In a petition launched December 28, 2017, on the South Korean Presidential website against regulating cryptocurrency collected over 220,000 signatures. According to the website, if a petition reaps over 200,000 signatures a government official will respond to it.
In response to the petition, Hong Nam-ki, Minister of the Office for Government Policy Coordination, in a statement asserted:
“The government is still divided with many opinions ranging from an outright ban on cryptocurrency trading to bringing the institutions that handle the currency into the system. The government’s basic rule is to prevent any illegal acts or uncertainties regarding cryptocurrency trade, while eagerly nurturing blockchain technology.”
Steady Bitcoin growth is a good sign
For crypto traders and investors the rational growth of bitcoin value seems to be more promising than the speculative to the moon spikes. Additionally, such progress in the price stability of bitcoin will allow more institutional investors to look into the crypto market as a safe investment option.
The price of bitcoin has experienced major drops over the past two months. The Coincheck hack also reflected on the value of largest cryptocurrency. However, the Japanese exchange has re-commenced withdrawals in Japanese yen.
On a long-term basis, bitcoin has grown steadily, apart from the run up that began prior to December.
Recently, bitcoin proponent and firebrand John McAfee tweeted “Please God people – get a perspective about the market! The price of bitcoin today is still higher than it was just three months ago! In a long-term view, Bitcoin is still climbing. Forget about these short-term ups and downs. If you are a short-term investor, you need to get real.”
Additionally, Commodity Futures Trading Commission (CFTC) decision to create a cryptocurrency subcommittee also had a positive impact on bitcoin price. Simultaneously, the CFTC also sought the crypto industry to espouse self-regulatory norms. Therefore, the growth of bitcoin indicates a maturing market that could work in parallel with other financial markets.
Contributions by Jamie Holmes