The price of the world’s most valuable cryptocurrency, Bitcoin, seems to have recovered from an eight-month low.
On Saturday, July 7, the Bitcoin price unexpectedly rose over $6800. This price spike in the token’s value came as a shock, owing to the prevailing bearish market. This points towards yet another shot to cross the $7000 mark.
A bunch of factors may have been responsible for this price rise. A major one being the ‘crypto whales’, who await such times and place large buy and sell orders for Bitcoin, resulting in abrupt price fluctuations. Following the finite supply of the BTC token (21,000,000 total supply of Bitcoin, with only 17,137,187 currently circulating), they are a relatively solid reason to remarkably impact the price.
The overall cryptocurrency markets are largely influenced by the price of Bitcoin. It provides for the basis of the large buys of Bitcoins, consequently pushing the cryptocurrency market prices further up. This might have resulted in a short-term feedback loop and raised the altcoin prices, ultimately resulting in a further hike in Bitcoin prices.
Furthermore, the performance of the lightning network has registered a continuous weekly growth. Some reports mention that the capacity of this network is increasing by 50% week-on-week. Adding-up to this, it has also been reported that 20 fresh stores per day are welcoming lightning payments.
In addition to it, the announcement by the South Korean trading market on their plans of relaxing all cryptocurrency trading restrictions, might have played a major role.
Citing the KoreaTimes, “Financial regulators plan to ease rules on crypto-based assets in line with policies initiated by G20 nations to establish unified regulations.”
The moderation would include the allowance of examining the domestic initial coin offerings (ICOs). Also, the South Korean authorities are looking forward to providing the cryptocurrency exchanges with a legal status.