On Thursday, June 10, the Bitcoin rate updated a 6-day high at around $ 38.4 thousand. Following BTC, almost all the largest altcoins returned to the green zone. Of the top ten digital currencies, Polkadot showed the best performance over the past day, having risen in price by 8% to $ 23.45. While Bitcoin has risen in price by 12% over the past day. The total cryptocurrency capitalization also responded, and grew by 4.3% per day.
On the eve, Bitcoin fell by more than 9%. On June 8, the value of the asset fell to a local minimum of $ 31 thousand. The reason was the news from the United States. The American authorities said they plan to introduce new rules to regulate cryptocurrencies, in particular Bitcoin, as part of the fight against ransomware.
Since then, the price of the cryptocurrency has risen by more than $ 7 thousand. Thus, today the coin is slowly regaining its earlier losses. But it is too early to talk about a radical change in the trend. Despite the rise in Bitcoin, many traders are of the opinion that the fall will resume soon. Consequently, speculation about a dip below the $ 30,000 support level has remained in effect in recent days.
Reasons for the latest rise in BTC
The latest wave of growth in cryptocurrency quotes began after it became the legal tender in El Salvador. The corresponding law was adopted by the country’s parliament. Later, El Salvador President Nayib Bukele instructed the head of the state-owned energy company LaGeo, Maynor Gil, to start mining Bitcoin from volcanoes.
Also on June 9, Victory Capital announced its plans to enter the crypto market, under whose management assets worth $ 157 billion. The company announced the creation of a fund that will invest in cryptocurrencies included in the Nasdaq Crypto Index (NCI).
At the same time, the head of the popular American broker Interactive Brokers, Thomas Peterffy, announced that by the end of the summer the company will provide its clients with access to cryptocurrency transactions. Now futures traded on the broker’s electronic platform.
However, there was also negative news. In particular, the authorities of the Chinese province of Qinghai published a document according to which mining in the region is now prohibited. The authorities of the Xinjiang Uygur Autonomous Region also gave orders to immediately stop the mining of cryptocurrencies.
The repressive policy of the Chinese authorities in relation to miners and crypto traders hasn’t yet reflected in the dynamics of trading.
Long-term prospects for Bitcoin
In the future, the price of the most popular cryptocurrency – Bitcoin – can almost halve: up to $ 20,000 apiece. This reported by Bloomberg with reference to the opinion of the experts he interviewed.
On the other hand, many continue to believe in Bitcoin’s long-term prospects.
For example, during a discussion at the Bitcoin 2021 conference, the head of the Gemini cryptocurrency exchange, Tyler Winklevoss, called Bitcoin “gold 2.0”. He stated that the asset’s price would rise to $ 500,000 in the next five years.
However, the most popular cryptocurrency is still very far from its record high of 64.82 thousand dollars, which was reached in April.
Although, according to Tyler Winklevoss, the current price of the first cryptocurrency is a good long-term buying opportunity.