Bitcoin Recovers to $55,000 After 5 Months on "US Regulatory Easing Expectations"

SEC "No Ban on Cryptocurrency"... US ETF Launch Expected
Bitcoin Surpasses $1 Trillion Market Cap Again

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Bitcoin prices have rallied, recovering to the $55,000 range for the first time in five months. Analysts attribute this rise to the U.S. regulatory authorities' declaration that they will not ban cryptocurrencies, coupled with growing expectations that cryptocurrency-related exchange-traded funds (ETFs) will be launched in the U.S. market.

According to CoinDesk on the 7th, as of 6:30 a.m. Korean time, Bitcoin is trading at $55,038, up 6.69% compared to 24 hours earlier.

This marks the first time in about five months since May 12, when Bitcoin recorded $56,749, that it has returned to the $55,000 level. Its market capitalization has also surpassed $1 trillion again.

Ethereum is trading at $3,559, up 1.2%, while Litecoin is trading at $180.86, up 3.7%.

Dogecoin is trading down 1.27% at 24.8 cents.

Previously, Bitcoin reached an all-time high of $64,000 in April.

Since reaching its peak earlier this year, Bitcoin and the cryptocurrency market were dragged down by intensified regulatory pressure, including China's complete ban on cryptocurrency trading.

Experts analyze that Bitcoin's rise was driven again by recent statements from the U.S. Securities and Exchange Commission (SEC) declaring no plans to ban cryptocurrencies, fueling expectations that Bitcoin-related ETFs will soon be launched in the U.S. financial market.

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC)
[Photo by Reuters]

Gary Gensler, SEC Chairman, appeared before the U.S. House of Representatives on the 5th (local time) and responded to the question, "Does the SEC plan to ban cryptocurrencies like China?" by saying, "No. (Cryptocurrency regulation) depends on Congress."

Dennis Vinokurov, Senior Analyst at Synergia Capital, said, "Gensler's statement on the 5th that the SEC will not ban cryptocurrencies had an impact."

Charles Morris, founder of ByteTree Asset Management, also stated, "The market moved as the threat of a total cryptocurrency ban disappeared."

Additionally, Republican Representative Patrick McHenry, chairman of the U.S. House Financial Services Committee, sent a letter to Chairman Gensler urging transparency in cryptocurrency regulation, which also raised expectations for easing Bitcoin regulations.

As Bitcoin rapidly rises, there is an assessment that it has re-entered a bull market.

In fact, Bitcoin futures prices on the Chicago Mercantile Exchange (CME) are trading at 12.8% higher than the current price.

Morris analyzed, "Due to recent concerns over the Evergrande Group crisis and rising energy prices, market anxiety has increased, leading investors to minimize risk. (In this context, Bitcoin's upward trend) means Bitcoin has become less sensitive to volatility in traditional markets."

There is also a forecast that additional gains can be expected by the end of this year, given that Bitcoin typically performs strongly in the fourth quarter.

According to cryptocurrency exchange Kraken, Bitcoin has risen on average 119% in the fourth quarter since 2011. Last year, it surged threefold.

Jason Dean, analyst at Quantum Economics, said, "After analyzing the market over the past few months, it is not surprising at all that Bitcoin has reached its highest level in five months," diagnosing that market sentiment has turned optimistic.

Matt Blom, director at digital asset exchange Eqonex, predicted, "Bitcoin could surpass $60,000 again."

This content was produced with the assistance of AI translation services.