On Tuesday, Bitcoin was able to achieve a three-week high and has surged by almost 100 percent from its lowest level in 2018, as its recovery continued after the financial regulator of South Korea eased its stance on cryptocurrencies, weeks following it consideration regarding a shut down on digital currency exchanges.
Analysts cited Yonhap, the South Korean news agency, which reported the governor of the Financial Supervisory Service, Choe Heung-Sik, as stating that the South Korean government will support trading of cryptocurrencies if “normal transactions” are made.
Reported were not able to verify the report made by Yonhap.
The managing director at online brokerage UFX.com that is located in Limassol, Cyprus, Dennis de Jong, stated: “While the threat of heavy regulation, or even a total ban on exchange trading, has hovered over bitcoin in recent weeks, reports this morning that the South Korean government are softening their stance have given traders confidence to buy.”
South Korea has been pushing for extensive regulatory supervision of cryptocurrency trading as locals, including housewives and students, have entered the market despite inherent risks and various warnings from policymakers across the globe regarding a bubble.
Previously, Seoul said that it was considering a shut down on local cryptocurrency exchanges, which drove the market into turmoil and affected bitcoin prices. Officials later clarified that an outright ban is only one of the steps that are being considered, and a final decision was still yet to be made.
On the Bitstamp exchange that is based in Luxembourg, bitcoin was able to hit a three-week high on Tuesday amounting to $11,722.58. It was last up by 3.4 percent at $11,555. From the low of this year of $5,920 early this month. Bitcoin was able to surge by almost 100 percent.
In its latest research note, Canaccord Genuity, stated: “Bitcoin’s price history suggests that months of consolidation are followed by weeks of rapid advancement.
“The safest way to benefit from potential bitcoin price appreciation is to buy and hold for the long term; trying to time it might be too difficult.”
This year, bitcoin has been pressured by a series of regulatory initiatives across the globe, which includes the incidence of hacks on exchanges. The most recent hack happened a few weeks ago when approximately $532.9 million worth of digital money was stolen from Coincheck, a cryptocurrency exchange that is based Tokyo, Japan.
However, other digital currencies recorded mixed results, which diverged from bitcoin for now. According to coinmarketcap.com, a cryptocurrency price tracker, the second-largest cryptocurrency in term of market value, Ethereum, was down by 1.3 percent over the last 24 hours at $935.02, while Ripple, the third-largest, dropped by 1.6 percent to $1.13/
On the other hand, the fifth largest cryptocurrency by market capitalisation, Litecoin, was one of the largest gainers with an increase of 9.3 percent at $246.03. The currency surged by as much as 10 percent after a “hard fork” resulted in the creation of a new cryptocurrency that is called litecoin cash.