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Bitcoin soars approximately $10,000- could bring in new buyers

Feb 16, 2018 Posted /  1574 Views

Bitcoin soars approximately $10,000- could bring in new buyers

Now for the first time in two weeks, the price of Bitcoin has soared above $10,000 and the sentiment seems to be overwhelming the entire market. $10 K mark appears to give a psychological advantage to the investors, who were fearing for further drops in the market price of the leading virtual currency. It is being analyzed that this rebound will attract the new buyers and the price may surge further.

However, the data provided by Coinmarketcap reveals that the currency at present is trading at $9,824 (as of the time of writing) with a market capitalization of $166 billion. Bitcoin in last few week had lost two-thirds of its value when at one time in December last year it was trading near $20,000 and came as low as $6,000 last week.

New Investors may come to the market

Since last few weeks, the regulators around the world are coming up with more positive stance around Bitcoin than they were proposing in the initial days of January 2018. There was fears lingering in the market that Bitcoin and its cousins might face a heavy crackdown. But as soon as South Korea and other countries revealed that the regulations will only affect the illegitimate use of cryptocurrencies and not the buyers who use it as investment assets, bitcoin prices seem to have recovered.

Some analysts feel that this price surge will also give a psychological advantage to the coin and new buyers will pour in the market.

"For most of December and all of January investors were focused on a regulatory crackdown, mostly in Asia," said Brian Kelly, a CNBC contributor and head of BKCM, which runs a digital assets strategy for clients. "That all changed when CFTC Commissioner Giancarlo spoke at the Senate Banking Committee and changed the regulatory tone. It appears the negative regulatory news is behind us and investors feel more confident investing."

Fear of Missing Out

Now the FOMO concept seemed to have resumed back in the market after the drop. Sources have revealed that South Korean government have appeared to build a soft corner for the cryptocurrencies as over 200,000 South Korean filled a signature petition to take back the talks of regulations ban. Local reports reveal that the South Korean government is looking at the possibility of a cryptocurrency exchange licensing system, which may work on similar grounds to New York's "BitLicense" system.

A South Korean minister remarked on Wednesday that its "basic rule" was to deter illicit activities connected with cryptocurrency trading, calculating that the ban was just an option the government had been contemplating.

"FOMO (fear of missing out) is back in the markets," Mati Greenspan, a senior market analyst at eToro, told CNBC in an interview. "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 further appended: "There's been a lot of FUD (fear, uncertainty and doubt) over the past few weeks. The FUD is fading now."

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