It looks like crypto investors are in for a bright summer going by the rampaging upswing of multiple cryptocurrencies over the past few days, and it is hard not to pin these rises on new regulations coming out of the world’s largest economy – the good old US of A!
The New York Department of Financial Services (NYDFS) has just announced that 8 cryptos are now officially approved for listing and trading. Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and XRP were all included.
Coinciding with this latest report on US regulations the crypto market has just gone from great to downright awesome.
Just in case you have not been paying attention over the last month or so, the crypto market has been going into full overdrive! BTC, ETH, BCH, LTC, XRP as well as several other cryptos began a bull run in light of news that came out in July confirming a US Supreme Court officially recognising BTC as 'real money' and at the same time US banks were given the go ahead to offer crypto custodial services to customers.
Now with the NYDFS news adding fuel to July's already steaming fire of positivity in the US virtual currency realm it appears that the crypto sphere just found a measure of stability sparking off what could be the next 'bull market' for cryptocurrencies.
This latest crypto stampede will likely send BTC over the $12,000-mark which could happen by the time this report is done – and so it will have to be written all over again! That said, if BTC is still in the $11,000 zone by the time this report is done, then yes you just read my thoughts out loud and this paragraph still stands. Either way, hold on tight because that $12,000 mark looks to be a dead cert.
It isn’t just BTC breaking past resistance barriers either. ETH is heading to $400, and LTC is peaking at close to $60, while BCH already broke past $300 on the last day of July. That means all we are waiting for is XRP to push through the $0.30 zone, which it has been threatening to do since August began.
The big ask right now is why the US?
Cryptos began to push through resistance last month and at the time, aside from a slight hiccup in Russia’s move forward into accepting crypto as a means to buy and sell, world news on the subject of cryptos was positive.
Read the report here: New Laws Paving Way For Mainstream Cryptos!
That news included how South Korea is now taking cyptos seriously despite creating a tax burden on its domestic crypto investors, the Philippines now reports several crypto exchanges operating in the country, and we even mentioned how Thailand is already a crypto friendly country.
At the same time a US supreme court offcially announced that BTC is legal tender in the USA which came out of a fraud case against the owner of the darknet operated BTC exchange Helix. Furthermore, the news that US banks were able to offer crypto services was also being touted on the crypto grapevine.
Collectivly, this barrage of worldy news appeared to help spur on market prices.
Now looking back at that report written on a glorious summer's day in July, it is increasing likely that the major influence that sparked the mid-July price hikes and the lastest August increases are not a result of world reports but instead a direct result of new laws in the US.
Coincidence or not, there is enough proof to suggest that every time the US market makes any announcement that involves the letters c-r-y-p-t-o and b-a-n-k, lo and behold, the market starts to move. So much so that crypto news outlets are feeling brazen enough to call the current state of affairs a ‘bull market’.
We hear you too. Those armchair critics who wrote the market off a year ago are hoping that we have all forgotten about their dismissive crypto reports only to return to the table with their best poker face, instead of with their tail between their legs, now lauding crypto as the next best thing to gold. Yet, two-faced or not, they are right, the market is back!
Stability is everything in the world of finance, and while a few years back – namely 2017’s tremendous and unforgettable bull market – it seemed governments were not looking to legitimise crypto but instead dismantle it.
In particular, the US government spurred on by its evil backseat warrior, the IRS, was going to do everything in its power to ensure the demise of our beloved virtual currencies.
Fast forward to now, August 2020, and it seems the very same government being villainised by the media, at least in the eyes of crypto investors and traders, appears to be the same organisations creating the conditions for the latest bull run. Probably the biggest eye opener here is that it is the US government that is paving the way!
Considering the country’s strict IRS laws, it once seemed cryptos were in for a tough battle for survival. Yet, the most unlikely contender is stepping forward and turning our risky and volatile investments into the ‘new gold’.
It makes sense too. Despite the latest coronavirus pandemic, the US economy is expected to reach $22.32 trillion by the end of 2020 up from $20.58 trillion in 2018. Its influence on the future of crypto is going to be critical the survival of ICOs and the crypto sphere as a whole.
With the US leading the way with most things crypto, Europe generally follows, and in some cases, Europe is already ahead of the game. In Germany, banks were given the go-ahead to store and sell cryptos way back in 2019 but were not permitted to start offering these services until January 2020 which is exactly what they have begun to do.
For now, if you are a crypto investor whether you got in a year ago, just before the latest BTC halving or you have been in it for the long run, now is the time to pat yourself on the back because your decision to stay in the game could payout over the next few months.
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And by the way - BTC has not yet hit the elusive $12,000 zone just yet - fingers crossed!