Mark Weaden
Bitcoin moves beyond the $50,000 mark for the first time in a month amidst bans and regulation changes
Despite global regulatory changes and the comprehensive cryptocurrency ban in China, Bitcoin and other major coins like Ethereum are climbing. Prices moved the highest they have in almost a month, even though many were expecting the markets to crash at the start of October.
Now that Bitcoin has moved beyond the $50,000 mark, many crypto commentators and strategists are trying to establish the next move of the market. Will it climb to a new all-time high or will the markets crash as was predicted at the end of September?
What Happened to Bitcoin?
While it’s difficult to know exactly what has caused Bitcoin to rally, there are a few things that could have contributed to it. A recent announcement from The Bank of America Corp. stating that they would be backing the digital asset class may have caused the price to increase.
The Bank of America shows a huge deal of interest from investment firms, as well as the public sector, which has begun to gain traction on Wall Street. The fact so much money is being made in the fintech space isn’t something that has gone unnoticed. But, Wall Street’s resistance to crypto seems to be waning.
Another influence could be the talk of regulation. While many would associate this with a negative impact on the market, the concept of regulating and creating a fair playing field for trading digital assets is something that is very appealing to the industry—although, there are certainly some crypto evangelists who would debate that notion.
The fact is, once the regulatory standards have been set, investing in crypto will be easy. The uncertainty regarding cryptocurrency investments is what has caused so many issues for investment firms, as they aren’t able to reliably offer digital assets. With an increasing number of financial institutions and investment firms opening their doors to crypto, we are likely to see more crypto-based portfolios in the near future.
In terms of what’s next for Bitcoin, the price has managed to establish itself after breaking through key resistance levels and may now find support around $50,000. Whether it pushes through the next support level remains to be seen.
