The uncontested king of cryptocurrencies is back in the game. With a 10% increase in price only today – Bitcoin beats his own all-time high. Bitcoin is trading at $5,400+ on Bithumb despite the fact that Bitfinex have a trading price between $5,320 – $5,364. This proves again that South Korean are crazy about bitcoin.
There are a lot of factors that had a positive influence in the Bitcoin price. First of all, China had actually no mid-term effect upon the Bitcoin price. Even if they closed their exchanges and made the ICOs illegal – the traders found a solution. Most of them migrated to the Japanese or South Korean exchanges in order to continue trading Bitcoin and similar cryptocurrencies.
Besides this, Vladimir Putin may have a small influence upon the Bitcoin price. Even though he praised and bashed the cryptocurrencies – his decision was right. Bitcoin should not be banned in Russia – it should be regulated. He actually recognized the benefits of using a blockchain technology claiming that:
I would like to draw your attention to the need to use the advantages that are offered by new technological solutions in the banking sphere.
Afterwards, he claimed that this should be done in a legal way, as cryptocurrencies right now have some risks:
First and foremost, this is an opportunity for laundering illegal gains, tax evasion and even financing of terrorism, not to mention the proliferation of scams to which ordinary people can fall victim. Cryptocurrencies are issued by an unrestricted circle of anonymous entities. Therefore, buyers of cryptocurrencies may be involved in illegal activity.
Another factor that influenced Putin’s decision was the fact that there’s no legal entity controlling Bitcoin. Therefore, in case of a bubble no one could be legally responsable. But of course, the regulation is possible. He even asked the banks not to create unnecessary barriers for regulating cryptocurrencies in Russia.
Hedge fund legend Mike Novogratz declared earlier this week that several institutional investors are preparing to engage in Bitcoin and cryptocurrencies. He stated that a large number of retail traders want to diversify their portfolio by investing in Bitcoin and other cryptocurrencies.
No More Jamie Dimon
Hopefully this is the last time we hear this name. Bitcoin’s biggest hater – Jamie Dimon declared for CNBC :
“I wouldn’t put this high on the category of important things in the world. But I’m not going to talk about bitcoin anymore”
CFO Marianne Lake was a bit more open minded about Bitcoin and the Blockchain technology and declared that:
“We are open-minded for digital currencies that are properly controlled and regulated”
These comments are normal, as Jamie Dimon suffered several image attacks and comments about his hypocrisy – coming from either traders or even people that worked with Jamie.
Some things are certain : neither China nor Jamie Dimon had no effect whatsoever on the bitcoin price on the mid term. The only fact that matters is the community – and the community is growing daily.