After a week in which Bitcoin grew strongly, finally crossed the 5K level and hit high
As we predicted in CoinStaker, Bitcoin price passed the resistance level of $5000 around five in the morning and kept growing until the price hit $5300 later.
The last time Bitcoin hit the 5K barrier, was in September 2nd while China and South Korea were trying to regulate cryptocurrency exchanges in their territories. The market reacted to it and the price arrived surprisingly, in a bearish market, at $2975 two weeks after it.
At the moment, it seems that Bitcoin found another resistance level at $5300 where the price would keep approximately the same price for some time. Then it will be seen how the price evolves. At the beginning of the year, Bitcoin price was close to $960 dollars. It had experienced a strong growth that arrived at 540%. We shouldn’t be surprised if Bitcoin price arrives at $7000 before 2018, some experts say. If the pattern seen in the past gets repeated, Bitcoin could keep growing even when the most important countries in the world try to regulate it.
Critics and regulations
How the market reacted to news coming from Russia is surprising; there, Russian President, Vladimir Putin, called for regulations on cryptocurrencies saying that they bring “serious risks”, as it was reported by Reuters. The Russian Central Bank also communicated that they were planning to ban websites selling Bitcoins and exchanges because cryptocurrencies could be a way to launder money.
Jamie Dimon, JP Morgan chief executive, pronounced himself against Bitcoin and cryptocurrencies saying that they were a fraud that would not last long, and could blow up. He added that cryptocurrencies are only used by drug dealers, criminal organizations and countries like North Korea trying to avoid the international sanctions imposed.
It seems that Bitcoin’s and cryptocurrencies’ investors are starting to realize that these currencies are not in the sphere of influence of governments and that they are truly decentralized. No one can control the flow of those currencies. If one government tries to regulate it, another country would benefit from these decisions letting them spread freely and receiving the investments that other countries couldn’t gain.
At the same time that Bitcoin reaches the highest price it has ever recorded, the other cryptocurrencies have no uniform trend. OmiseGO, IOTA, NEO and NEM are operating with big loses. BitConnect and Litecoin are following the path that Bitcoin took, growing around 10%, and 8,4% respectively. The other coins are stable or with small gains.
In CoinStaker we explained that the bullish market surrounding Bitcoin could be a result of the new hard fork coming in November. If investors have Bitcoins, it is taken for sure that, as soon as the split will happen, they will have the same amount of Bitcoins but in the new currency: BitcoinGold. This situation could be an opportunity for investors that would like to buy cheaper alt-coins.
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