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Screenshot of a breaking news alert e-mail from Q2 2017
Bitcoin saw really bad days at the start of the year. However, with February coming to an end, the “people’s currency” is rising again to the top. It is now trading at $11,200, and while it’s far away from its all-time high of $20,000 in December, 2017, the cryptocurrency is gaining momentum.
According to CoinMarketCap, the digital currency is topping $11,400 and that is the highest level it hit since January 30th, 2018. With the recent crash, Bitcoin took almost all altcoins down with its self, and this showed investors around the world that the high correlation between Bitcoin and other cryptos is highly dangerous. It seems that once Bitcoin hits a major low, Ethereum, Cardano, Litecoin and the top 10 cryptos by market cap are all falling down.
Now, the recent increase of almost 100% in Bitcoin’s price is coming from the not-so-rigid regulations imposed by South Korea on cryptos. The country was thinking of banning all digital currencies and domestic exchanges, something that could have had a huge impact on the prices of Bitcoin and other major altcoins.
According to Franky Crowhurst, Jay Clayton, who is the chairman of the Securities and Exchange Commission and Christopher Giancarlo, who is the chairman of the Commodities Futures Trading Commission said in a testimony from the Senate Banking Committee:
“We must crack down hard on those who abuse our young enthusiasm for Bitcoin and blockchain technology…We owe it to this new generation, to respect their interest in this new technology with a thoughtful regulatory approach.”
No one knows how the price of Bitcoin will change tomorrow. One major factor, however, seems to be getting ahead of everyone’s predictions, i.e. the fact that Bitcoin is the very first source of blockchain and the first digital currencies of all. As nobody knows yet who Satoshi, the creator of Bitcoin is, and what was the initial purpose of Bitcoin, it all seems to be positively correlated with the value (price) of the currency. So, in consideration of the fact that multiple companies and financial institutions around the world have already implemented blockchain in their core businesses, the position and strength of Bitcoin may be inherently strong and will remain such in the future.