Having shown sideways movement and correcting heavily for over the past two weeks, Bitcoin has yet again brewed a fresh optimism among crypto investors in the last two weeks and looks to be in a recovery mode. On Tuesday, Feb 20, Bitcoin convincingly surged past the 11,000 levels and went further to make its day high of 11,927, just below the 12,000 mark as per the data on CoinMarketCap.
According to Brian Kelly, a trader on CNBC’s “Fast Money”, the positive movement in Bitcoin’s price was the reflection of crypto-friendly attitude displayed by a few government regulators. On Monday, Wyoming passed a bill relaxing the laws for securities for some tokens. Also, on the other hand, the South Korean government which has been seen cracking a whip through crypto-regulations, said that the government would “support” and “encourage” operations till the time they are “normal” transactions.
Earlier in Jan 2018, the South Korean government has suggested a possibility of putting a ban on crypto trading. But having received a huge backlash from the native crypto-investor community, the government was forced to reconsider its decision. While commenting on Tuesday’s Upmove, Brian Kelly said that “The sentiment has changed here, which to me is going to start bringing in more investors to the crypto space.”
Kelly believes that the softening of rules can pull-back more investors into buying Bitcoins again which could possibly trigger the price of the cryptocurrency on an upward trajectory. The CME and CBOE Bitcoin futures were also seen hitting their highest rally since the Jan. 29 and were seen making 16 to 15 percent surges, respectively.
Today, however, Bitcoin, Ethereum and other major cryptocurrencies are seen correcting by almost 10% and again Bitcoin is seen slipping below 11,000 levels. At this stage, the opinion of the experts seems to remain divided on the future journey of Bitcoin and its other rival cryptocurrencies. Many in the investor community continue to believe that the sudden shooting up in the price of Bitcoin from $6,000 levels is only is only a ‘corrective rally’ and there is a bigger downtrend to be followed soon after.
While commenting on the recent steps taken by the South Korean government on Bitcoin regulations and its pull-back from introducing a ban on crypto-trading, Choe Heung-sik, chief of South Korea’s Finance Supervisory Service (FSS), said: “The whole world is now framing the outline (for cryptocurrency) and therefore (the government) should rather work more on normalization than increasing regulation.”
Choe’s comments have really brought a new optimism within the crypto-investor community and clearly indicates that the government is willing to co-operate in its plans for self-regulation. Kim Haw-joon of the Korea Blockchain Association recently said that “Though the government and the industry have not yet reached a full agreement, the fact that the regulator himself made clear the government’s stance on co-operation is a positive sign for the markets.”
Moreover, there are talks about implementation of a new Bitcoin code that will boast a full SegWit support which will help to improve the scalability of the network by implementing a new layer that is potentially much more cheaper and faster.