Bitcoin price has returned to the $9,000 territory again, after falling below $8,500 during the first day of the month. Here are the three main reasons why the largest crypto by market cap is about to update the February peak.
India Lifts Crypto Ban
As we reported yesterday, India has de facto accepted the use of cryptocurrencies when the Supreme Court had nullified a decision of the Reserve Bank of India (RBI) to ban crypto trading. The judges concluded that the central bank was not empowered to curb the operations of crypto exchanges and other crypto-oriented firms.
Specifically, judges agreed that virtual currencies were not money but rather goods or commodities and thus don’t fall under the supervision of the RBI.
The crypto community in India is confident that the government will become more crypto-friendly. India is the second-most populous country after China, representing a huge market for Bitcoin and its brethren.
Crypto Trading Becomes Legal in South Korea
Earlier on Thursday, South Korea’s parliament has recognized cryptocurrency trading as legal. While buying and selling cryptocurrencies hasn’t been an issue in South Korea, now the country has clear guidelines on how to carry out crypto operations.
The parliament passed an amendment to the Reporting and Use of Specific Financial Information Act, accepting crypto trading as a legal activity.
However, the new amendment doesn’t lift the obligation of crypto firms and wallet providers to comply with know your customer (KYC) practices that involve real name checks.
Stock Markets Are Plummeting, Investors Focus on Bitcoin
Another bullish signal for the crypto space is that the stock markets have crashed since mid-February amid fears of the coronavirus outbreak. Thus, investors are turning their attention to safe-haven assets, and cryptos are among the best options.
On Thursday, all 11 of the S&P 500’s sectors declined. FXTM analyst Lukman Otunuga said in a note to investors:
“Panic mode is clearly evident. We still don’t know the full impact on corporate earnings for 2020 and US companies will be lucky if they achieve zero earnings growth.”
Other reasons why Bitcoin is bullish right now refer to the approach of the much-anticipated halving event and the current devaluation of fiat currencies, as major central banks are cutting interest rates to mitigate the coronavirus risks.
What factors are responsible for the latest Bitcoin price rally? Share your thoughts in the comments section!
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Source: Bitcoinist News