Is Bitcoin finally going to have its lucky break?
The crypto market is no stranger to turmoil, a fact that is evident in its characteristically high volatility and noticeable swings either upwards or downwards. Investors who trade Bitcoin are especially accustomed to abrupt changes, as this virtual currency often finds itself handling significant movements. Bitcoin has had its plate full recently, facing strict regulation and even an imminent ban in its near future. While its ability to break through the aforementioned glass ceiling, crypto traders are still wondering whether it’s a reliable sign for what might happen next. After months of dwelling on the $4000 level, the digital currency has reached over the $5000 mark. Could Bitcoin finally be out of the woods, or is it too early to celebrate?
If you have been following Bitcoin in the past few years, you have likely noticed the Asian market’s interest in this digital currency. Japan, for example, has shown its support by accepting Bitcoin as legal tender, which means you could pay for a variety of goods and services with this altcoin. Other countries like China, Hong Kong, and South Korea are avid crypto trading fans. The question is whether their support is strong enough to keep the asset afloat.
Bitcoin has been struggling for a while now, especially when the virtual currency slipped to the $4000 handle for about 5 months until the beginning of April 2019. The cryptocurrency barely managed to crack the $5000 ceiling during this time. Now that Bitcoin is trading on a narrow $5200 range, some traders are wondering what might be next for the crypto market’s first trailblazer. Is this digital coin finally ready to make its much-awaited comeback or is it still too soon to tell whether Bitcoin might be able to break through the higher handles?
The trading community is divided into two camps on this matter. The first claim Bitcoin is more than likely to celebrate significant gains within just a few years, whereas the second argues Bitcoin is on its way down – regardless of its movements now. The second camp is likely the same group of people who accused Bitcoin of being a bomb just waiting to go off in the faces of their unsuspecting traders. While speculating does create tension and hope in the financial markets, let’s look at some dry facts.
While cryptocurrencies are accepted in countries all over the world, this market still encounters bumps in the road on a semi-regular basis. Some of the more significant movements have been attributed to regulation-related issues. Many countries do not accept Bitcoin and its counterparts as legal tender, and some even outright forbid trading Bitcoin on online exchanges. China has recently announced its intention of banning Bitcoin mining, as well as the mining of other altcoins. This activity has since made its way to the list of activities China plans to eliminate completely and is currently seeking the public’s opinion on the matter until early May. This is an area where China’s standing as the second largest economy in the world has an undeniable pull, and it has made its stance regarding cryptocurrencies very clear for some time now.
Market experts are foreseeing for a clear path for quick growth for the BTC/USD as the crypto asset’s hash-rate reached a 4 month high this week. Though it might seem easy enough, this course of action has yet to unfold. Numerous traders would be more than happy to trade Bitcoin’s next winning streak, but they might want to hold off on celebrating just yet.
The United States Securities and Exchange Commission (SEC) Chairman Jay Clayton had also announced recently that the organization will double down on its regulation on the crypto market. This course of action has the potential of causing Bitcoin to drop against the US dollar, as the United States is home to numerous Bitcoin traders and the world’s largest economy.
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