Bitcoin (available on Coinbase) (BTC) price jumped substantially last month after finding support around $6,000 in early February; the solid Bull Run in prices was supported by lower than expected regulatory actions from the U.S. and South Korean authorities.
Though analysts and regulators had issued several bearish predictions last month, bulls successfully kept prices around $10,000, and they expect prices to double this month.
Regulators all around the globe are still unsure how to regulate cryptocurrencies. Major players like South Korea and the United States have adopted a positive tone for the crypto markets and the announcement of National cryptocurrency tokens from Iran and Venezuela added to trader’s confidence – real cash assets will back these coins.
An Upside Trend is Probable
Market trends aren’t as adverse as they were at the beginning of the last month when Bitcoin (available on Coinbase) price crashed to $6,000 from $19,000 level.
Regulators are now sending positive signals, and the financial sector has been quickly adopting blockchain technologies. The Central Banks and other major financial institutions are partnering with Ripple (available on Binance) (XRP) and Bitcoin (available on Coinbase) to improve their business transactions.
Fundstrat’s Tom Lee has predicted that the cryptocurrency market will recover sharply this month, supported by positive price trends as well as crypto-related announcements by major companies and big banks.
Lee stated:
“In 2018, we forecast at least three major publicly-traded corporations to issue native digital tokens. Already three major companies have announced efforts within crypto-currencies, which demonstrate that corporations may be moving towards crypto-currencies before Wall Street has embraced them.”
The banks have been embracing the influx of cryptocurrencies as a risk to their business; JP Morgan Chase and the Bank of America believes Bitcoin (available on Coinbase) and other cryptocurrencies could have the potential to snatch a massive market share from banks.
Regulatory Actions Are Needed To Sustain The Bull Run
The use of cryptocurrency for illegal activities has been blasting its upside potential – critics are blaming digital currencies for terrorist funding, cybercrime and money laundering. Although regulating cryptocurrencies may have had a short-term negative impact on prices due to its significant popularity among criminals, regulating it will improve trader’s confidence in digital currencies and allow them to attract institutional investors.
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Based in Saudi Arabia, Siraj has a sTron (available on Binance)g understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects.
Siraj is a published financial analyst on the world’s leading websites including SeekingAlpha, TheStreet, MSN, and others.