The upside volatility in cryptocurrency prices extended into Tuesday; Bitcoin and the rest of top ten digital currencies are rallying at a robust pace since the market experienced much-needed support from the Financial Stability Board. The board has removed the threat of adding additional regulatory measures on digital currencies albeit some participants were keen for regulations.
Bitcoin price (BTC) soared to $8,500 today after hitting $7,000 mark just two days ago, while analysts are expecting the uptrend to continue unless the market experiences any negative news from G20 summit – where global leaders and regulators are debating economic and financial challenges.
Some market pundits expect bitcoin price to hit the resistance level of $9,000 based on technical analysis of bitcoin performance on charts.
Altcoins also rebounded at strong pace following the recent slump; Cardano (ADA), EOS (EOS), Stellar (XLM) and IOTA (MIOTA) are surging at a double-digit rate over the last two consecutive days. The total market capitalization jumped to $330 billion today from Sunday’s low $270 billion.
What are the Catalysts for Uptrend?
Cryptocurrencies are moving on the relief provided by FBS board – who believes digital currencies aren’t in a position to threaten the whole financial system. Instead, they urged the finance ministers to reduce the risks by working together.
The relief looks temporary for crypto markets considering regulators concerns over the use of cryptocurrencies for illegal purposes, including money laundering, terrorist funding, cybercrime and tax evasion.
Regulators aren’t going to let crypto markets operate freely in the days to come – they are getting closer to crypto exchanges by asking them to get the registration certificate from SEC. On the other hand, Morgan Stanley analyst sees significant resemblances between the dotcom bubble and bitcoin; the analyst expects bitcoin price to crash at a faster pace than NASDAQ in 2000’s.
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