Despite several warnings and intensifying regulatory actions, there is cryptocurrency excitement today as traders are vigorously capitalizing on the buying opportunities. Bitcoin price moved to the range of $8,000 after hitting the new support level of $6,000; all this happened in only 24 hours.
Cryptocurrencies extended Tuesday’s rally today and the majority of digital currencies are up at a double-digit rate, while the total market capitalization rebounded to the level of $4 billion.
Source Image: coinmarketcap.com
At the time of writing:
- Ethereum (ETH) trades above $800, sharply higher from Tuesday lows of below $600.
- Bitcoin Cash (BCH), NEO (NEO), Litecoin (LTC) and NEM (XEM) all are up at a double-digit rate.
- Ripple (XRP), which lost 80% of value in the last month, gained almost 10% of the price on Wednesday.
Cryptocurrency Excitement Began When U.S. Regulators Provided Relief
Bearish market sentiments and pessimistic reports from regulators crushed the cryptocurrency markets last month. The prices fell almost 70% on Tuesday from an all-time high that was hit just a month ago.
However, chairperson of Commodity Futures Trading Commission (CFTC) and the chairman of the Securities and Exchange Commission (SEC) provided some relief to cryptocurrency prices by commending blockchain technologies. The Chairman’s signaled a balanced approach for cryptocurrencies, contrary to the expectations of the strict stance. They also believe that the role of cryptocurrencies and blockchain technologies is difficult to ignore.
CFTC chairman, Mr. Christopher Giancarlo said, “It’s important to remember that if there were no Bitcoin, there would be no distributed ledger technology. Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes, and engaging in economic activity. Ignoring these developments will not make them go away, nor is it a responsible regulatory response.”
Excitement Seems to be Limited
Combined with positive comments from U.S. regulatory heads, trader’s strategy of capitalizing on the dip in prices led the price higher. While the Bitcoin price soared above 20% at the beginning of Wednesday trade, the rally seems to be soothing as the gains reduced to 14% at the time of writing. The price movement signals that investor’s optimism is limited and they are waiting for new market reports to set their strategies.
Featured Image: pymnts