SAN FRANCISCO, Calif. – Bitcoin went through a price surge this past Tuesday, which led it to a close in of $12,000 level. Analysts have said that one more bull is what it is going to take to drive another price hike.
Fast Money trader Brian Kelly mentioned that one of the primary reasons for the Bitcoin price surge occurrence was the recent change of the government’s attitude toward cryptocurrency.
Even when there were already lots of people getting interested in Bitcoin, many states did not give it a welcoming atmosphere, despite the continued price surge. Most government officials were against the legalization of the said cryptocurrency. Some of them even wanted to pass a banning bill against Bitcoin.
In that sense, it did not take long before the price of Bitcoin declined. Some people thought it marked the end of cryptocurrencies. However, due to the shift in perception in Bitcoin, the said cryptocurrency was able to get back on its feet, resulting in a new price surge.
Bank of England Governor Mark Carney was among the few who had believed that Bitcoin had already met its downfall when the price surge in the cryptocurrency stopped. He had said in an interview that Bitcoin would never be considered as a currency because it failed to meet two requirements of money – store of value and means of exchange.
Even though the technology has been proven useful in verifying transactions due to its decentralized factor, there are still arguments which pointed that Bitcoin is not a reliable means of trade.
Last month, Stripe discontinued its support for Bitcoin due to slow confirmation times and high rates. December of last year, Steam also gave up its deal with Bitcoin, citing volatility rates and lagging confirmation times as the main reasons.
This past Monday, Wyoming has passed a bill, which lessened the friction on securities law for tokens. The South Korean government had previously made it clear that it was willing to go beyond borders to crack down on cryptocurrency trading, despite the price surge because they did not believe that it had the potential to be a currency. However, they seemed to have changed their mind and even said that they are now willing to support cryptocurrency trading as long as the venture does not involve illegal transactions.
Kelly also stated that the friendlier demeanor toward Bitcoin would be the dawn of a new era for cryptocurrency investments. He believes that since many governments now accept Bitcoin, more people will most likely venture into the crypto space sooner or later.
Kelly noted that if the softening of Bitcoin laws is to persist, he believes that many investors will start to dive into the industry and will most likely kick around the $12,000 level.
Kelly suggested that those who plan to venture into Bitcoin should buy March Cboe bitcoin futures priced at $12,000 with an $18,000 target.
Apparently, Brian Kelly is not the only one who speaks positively about Bitcoin. John Rainey, chief executive officer of PayPal, said that in the future, he believes that Bitcoin will become excellent payment options for many online business owners and buyers.
Rainey stated that due to the volatility of Bitcoin, it is marked out from other reliable currencies. He cited an example of a businessman who had accepted Bitcoin as a point of transaction. At first sight, the business person would have been a lucky guy due to the 10% profit margin. However, if he wakes up the next day and Bitcoin drops by 15%, then the business person would be in an underwater situation.
Bitcoin compensates its volatility factor due to its technical merit. Despite Bitcoin’s up and downs, it is undeniable that what’s behind the Bitcoin technology is a fantastic feat. For Rainey, it may take up to several years before Bitcoin becomes an accepted currency worldwide, but he is positive about it, nonetheless.
In countries like Finland, it is evident that officials are trying to get their grip on Bitcoin back. In 2017, 2,000 Bitcoins had been confiscated from Finland. Now the government is trying to devise ways on how to get it back.
Per the Treasury guidelines, Finland authorities are forbidden from gaining access to the Bitcoin stash which is worth about $22.8 million. Instead, the Treasury insisted that the fund is stored offline, in cold storage.
The Treasury stated that Finland authorities must not, in any way, represent support for any cryptocurrencies regardless of the frequent price surge. With that, upon the realization that Bitcoins existed in their domain, authorities were urged to follow the standards. The assets had to be converted into a fiat currency to save the value contained in the coins.