KING CRYPTO – UP AND AWAY
After having gone through a period of enormous gains, Bitcoin, the world’s biggest cryptocurrency by market cap, experienced a prolonged slump. However, in recent days, the tide has turned and quite strongly.
Tax Authorities in the US have taken serious steps to strengthen and change the US tax code, hiring up to 85,000 new IRS agents , and requiring banks to report any transaction over $600. Red flags are flying, forcing many more into crypto and out of banks .
Recently cryptocurrency hit $57,000 a token but the rally had actually taken a break and it seems that investors as well traders are possibly looking for fresh triggers. In this context, it is necessary to point out that many Bitcoin experts believe that the cryptocurrency is now in a position to test its record levels once again.
Experts have put forward many reasons behind the latest rally that has been seen in Bitcoin. One of the more popular explanations is the lowering of concerns with regards to the regulatory situation in the United States and China, two of the biggest crypto markets in the world.
However, in addition to that, there is also a certain degree of optimism about the United States Securities and Exchange Commission approving a Bitcoin-based exchange traded fund. That could be a game-changer for the cryptocurrency considering the fact that the existence of an ETF approved by the SEC could lead to the flow of institutional dollars into the cryptocurrency.
Oanda Corp senior analyst Edward Moya however stated that if Bitcoin is going to hit $60,000 a token once again then it will need a fresh trigger or catalyst. He went on to state that if that happens then it might be quite possible for Bitcoin to hit record highs. In this context, it is necessary to keep in mind that at this point in time the relative strength index of Bitcoin stands at 70. That is a number that indicates that the cryptocurrency might have been overbought.
In this regard, it is perhaps also important for investors to remember that at this point in time there is also a certain degree of expectation that by the end of this month Bitcoin could get as many as four ETFs in the United States. If that happens then it is going to end many years of waiting for approval.
In the past there have been disappointments in this regard from the SEC, however, this time it could be different. The current Chair of SEC Gary Gensler had earlier stated that the regulatory body will be going by a format that could end up proving to be favorable for the ETFs.