Earlier today, on October 30, the bitcoin price has achieved a new all-time high at $6,345, as the market continues to demonstrate optimism towards bitcoin ETFs, the possibility of China resuming cryptocurrency trading, South Korea’s regulation of bitcoin, and bitcoin hard forks.
The recent price surge of bitcoin from $5,800 to $6,345 can be attributed to a wide range of factors including the high probability of bitcoin ETF approval and China resuming cryptocurrency trading later this year.
Several analysts have also emphasized that the decline in support towards bitcoin hard forks such as Bitcoin Cash, Bitcoin Gold, and SegWit2x (B2X) have contributed to the upward momentum of bitcoin, as the market develop confidence around the original bitcoin blockchain remaining as the majority chain subsequent to the SegWit2x hard fork in November.
More to that, the South Korean government recently announced its plans to adopt bitcoin as a commodity and regulate the market efficiently to protect businesses, investors, and users. Behind Bitfinex, South Korean cryptocurrency exchanges such as Bithumb and Coinone are the largest cryptocurrency trading platforms by trading volume. In the upcoming months, South Korean financial authorities will regulate the market to facilitate the growth of the local bitcoin and cryptocurrency markets.
As experts like Max Keiser noted, given the success of strictly regulated cryptocurrency options, derivatives, and futures trading platforms such as LedgerX, the probability of bitcoin ETFs being approved by mid-2018 has significantly increased over the past few weeks. The LedgerX team explained that the demand for bitcoin from institutional investors and the traditional financial industry exceeded its expectations.
“[In the first week of launch, we ended up completing swaps and options trades worth over $1,000,000 USD. Crucially, these trades were cleared through LedgerX, which is the only institutional grade, US federally regulated exchange and clearing house for digital currencies. And we are literally just getting started,” said LedgerX.
China Cryptocurrency Trading and Bitcoin Forks
Other minor factors that could have influenced the short-term price trend of bitcoin are the possibility of the Chinese government resuming cryptocurrency trading and the decline in support for bitcoin hard forks.
Last month, local researchers in China introduced the possibility of the Chinese government enabling cryptocurrency exchanges after the reelection of President Xi Jinping, given his support for free markets. This week several exchanges including ZB.com revealed that users will be able to trade cryptocurrencies by November.
“President Xi Jinping is preparing for his October 18th re-election and wants to appeal to his Communist voting bloc. My prediction is this: as soon as President Xi Jinping is reelected — and he will be — conservative, free(er)-trade legislation will be put in place, and Bitcoin exchanges will be reinstated. In fact, I wouldn’t be surprised to see the Chinese government encouraging certain exchanges and cryptocurrencies, once this legislation hits,” said bitcoin researcher Jon Creasy.
Unverified rumors around China resuming cryptocurrency trading and the decline in support for SegWit2x and Bitcoin Gold from miners, bitcoin community, and industry likely contributed to the increase in the price of bitcoin in addition to the major factors addressed above.
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Last modified: May 21, 2020 9:10 AM UTC