Bitcoin value shows impressive gains
The cryptocurrency rally has continued today with the Bitcoin value surpassing $10,000.
In a solid rebound in values across most cryptocurrencies, Bitcoin has bounced back and risen sharply.
Investors are letting our sighs of relief as Bitcoin made it above $10k for the first time since February 1st.
The recovery is a welcome turn of events after Bitcoin’s value reached lows of under $6000 just over a week ago.
Other cryptocurrencies rallied and followed reports that alleviated fears of a heavy-handed crackdown by authorities in the U.S. and South Korea.
Fundstrat Global Advisors’ Tom Lee said in a Thursday report that the “historical performance” of Bitcoin’s dip “implies new high by July.”
As regulatory fears subsided, Bitcoin’s price climbed by 8% percent to top $10,200 Thursday.
Crypto bounces back
Cryptocurrencies across the board, including Ethereum, Ripple, Bitcoin Cash and Litecoin were also higher today.
Speaking of the Bitcoin value rise, Mr. Lee noted that during price recovery periods, such as the current environment, Bitcoin takes 1.7-times the duration of the decline to fully recover.
That “implies that 85 days are needed to recover prior highs — this is July 2018.”
Lee has raised his mid-2018 bitcoin target to $20,000 and predicts that bitcoin will hit $25,000 by the end of this year.
‘FOMO is back in the markets’
According to CNBC, South Korea appeared to soften its attitude toward cryptocurrencies this week.
One report suggested that the government is looking at the possibility of a cryptocurrency exchange licensing system.
The licensing system could be similar to that of New York’s “BitLicense” system, which provides firms handling virtual currencies a license to operate, according to the report.
South Korea is one of the biggest cryptocurrency markets in the world.
Its government spooked investors last month after one minister said it was preparing a bill to ban trading via cryptocurrency exchanges.
A South Korean minister said Wednesday that its “basic rule” was to prevent illegal activities associated with cryptocurrency trading, adding that a ban was just one of many options the government had been considering.
“FOMO (fear of missing out) is back in the markets,” Mati Greenspan, the senior market analyst at eToro, told CNBC in a phone interview, adding:
“Crypto investors have been sitting on the sidelines waiting for a rally.
“Yesterday it was Litecoin which had a clean break out from its resistance levels and investors jumped on and are still riding it today.”
Greenspan added: “There’s been a lot of FUD (fear, uncertainty, and doubt) over the past few weeks. The FUD is fading now.”