Bitcoin was able to reach new highs on Tuesday February 20th, 2018 marking a 100% increase from its lows at the beginning of the year. The bounce for the cryptocurrency continues to get better as the South Korean financial regulators soften their regulatory stance following recent steps taken to ban cryptocurrency exchanges.
According to analysts, South Korean news agency Yonhap, which reported the governor of the Financial Supervisory Service, Choe Heung-sik’s statement that the government is behind cryptocurrency trading on the condition that “normal transactions” are made was a big rallying boost for Bitcoin.
However, the reports from Yonhap are yet to be verified.
Dennis de Jong, managing director at online brokerage UFX.com in Limassol, Cyprus has said that despite the fact that rumours of a strict regulation or worst still a complete ban on the cryptocurrency’s trading has been surrounding Bitcoin for the past weeks, buyers are finding solace in the latest development hinting to a softer regulation from the South Korean government.
South Korea which was hesitant in allowing people to investing in cryptocurrencies initially formulated strict regulations against digital currencies. The authorities there have now come on board despite series of warnings from global policymakers of a possible burst of the cryptocurrency market bubble.
Earlier on in February 2018, Seoul was considering banning all local cryptocurrency trading. This resulted to panic in the market causing price declines. However, officials have now clarified that the ban is just one of the measures that are to being considered but that a final decision is yet to be made.
Bitcoin made new records from the past three weeks climbing to $11,722.58 according to the Luxembourg-based Bitstamp exchange on Tuesday. This is a 3.4% increase from $11,555.
In its recent research, Canaccord Genuity noted that latest Bitcoin prices historically stabilises after a slump.
The best way to make gains from Bitcoin price increases is to make purchases when prices fall then wait for a while.