Bitcoin Hits $8,000 on Its Road to Recovery

Bitcoin seems to be making a comeback, with bitcoin price climbing beyond $8,000 on July 24, 2018, for the first time in two months, leading enthusiasts to believe cryptocurrencies might be coming back in style.

Bitcoin Comes Back in StyleBitcoin reached the $8,000 mark on July 24, 2018 (Source: Steemit)

It’s been a great couple of weeks for bitcoin. Its price has increased by as much as 4.1 percent, to $8,016.62 during Hong Kong trading hours on the morning of July 24, 2018.

To bitcoin enthusiasts, which have been closely observing bitcoin price trends for a few weeks before this sudden boost, this is hardly an unexpected development.

Namely, bitcoin has already breached the $7,000 mark in the week before July 24, jumping by almost 10% in just 24 hours. In the entire week leading up to this date, the price of bitcoin jumped by almost 20%.

The Reasons Behind Bitcoin Price Recovery

One of the reasons for such a surprising trend might be the fact the well-known financial giants have declared their wish to get on the cryptocurrency bandwagon.

One of them is BlackRock, the world’s largest asset manager, which revealed in the first half of July 2018 it has set up a working group to look into blockchain and cryptocurrencies.

Furthermore, David Solomon became the new CEO of investment banking giant Goldman Sachs. Many may know Solomon as a recent bitcoin enthusiast and a previous Goldman Sachs chief operating officer, who in June said the said bank plans to enrich its portfolio by adding further bitcoin and cryptocurrency services.

He said, however, the bank needs to “evolve its business and adapt to the environment.”

Business magazine Forbes predicted Solomon’s appointment might give an additional boost to the bitcoin price after BlackRock’s announcement.

The second reason might be an increase in the favorable regulatory framework in countries which previously weren’t so enthusiastic or even positive towards bitcoin, ether, litecoin, and others. For instance, the U.S. Securities and Exchange Commission (SEC) has begun discussing whether to approve a bitcoin exchange-traded fund (ETF), on the basis of a request New York-based VanEck and blockchain platform SolidX filed through the Chicago Board of Exchange (CBOE). Many are expecting the SEC will announce its decision around August 15, 2018.

South Korean regulators have joined their U.S. colleagues, with the Financial Services Commission (FSC) reorganizing itself so it may “proactively respond to financial innovation in the fourth industrial revolution era,” which means the developments surrounding blockchain, bitcoin, and other virtual currencies.

The FSC issued a press release on July 17, 2018, announcing the reshuffle of its organizational structure.

The people at the FSC detailed a plan to create a Financial Consumer Bureau and Financial Innovation Bureau.

The latter is more important for any crypto enthusiast in South Korea (and consequently the world), as this bureau’s task will be to deal with policy initiatives for financial innovation.

For instance, it will deal with innovative financial services using FinTech or big data, and with responses to new developments and challenges such as cryptocurrencies.

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