Bitcoin in June has suffered significant losses in June. And if there is anything that we already know about cryptocurrencies, it is highly volatile in nature. In just a couple of days, Bitcoin’s value has grown over $7,000. It has reached a high of $7,542.
It looks like other cryptocurrencies as well are enjoying short-term bullish trend as Cardano and Stellar. Cardano, for instance, experienced a 41.5{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} increase in the past week. Stellar, on the other hand, is up by 30{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} in the last 24 hours.
FOMO is Back?
And since Bitcoin has crossed $7,000 mark and is even nearing $7,500, it is important to ask if the predictions by the likes of Tom Lee are actually true? Tom Lee predicted that Bitcoin’s price this year is going to hit $25,000 only to adjust his prediction to $22,000. Nonetheless, he believes that Bitcoin this year is going to surpass the former high last year.
As the bear market is already fading, could it be that FOMO (fear of missing out) is back? It is true that there had been different regulatory changes that happened in the crypto market over the last month. Japan, for instance, has stepped forward with rules and regulations that will help protect investors that made it harder for crypto exchanges to operate. However, there are those who believe that this is a necessity in order to achieve another bull run. There are the likes of SBI, which is a major financial firm in Japan that has decided to open a crypto exchange.
Next, you also have the likes of Blackrock. It is the world’s largest exchange-traded fund provider and asset manager. In addition to this, its CEO used to have a negative impression on cryptocurrencies.
$8,000 Level?
Since Bitcoin has cleared $7,000 as a hurdle and is even closing in on $7,500, the next resistance would be around $9,575. However, before it even gets to this point, it is crucial that it surpasses the $8,000 psychological level first. If this happens, it is important to ask if we are seeing yet another rise from the cryptocurrencies.
The US Exchange Commission has considered Bitcoin as commodities. And that is big news in today’s crypto world. Together with Ethereum, SEC believes that Bitcoin and Ethereum don’t have to comply with the rules and regulations applied to different stocks and other investment vehicles.
However, it is a different story for the ICOs and other cryptocurrencies at this point. Ripple, for instance, is facing different lawsuits with a claim that it is actually a security. As for the ICOs, it is a case to case basis.
Are we going to see Bitcoin reach $20,000 or even surpass its all-time high? All of this is possible and is still up in the air. Considering that Bitcoin has jumped by $1,000 in just a matter of few days, this is a possibility that every investor should consider. And also, regulatory changes may have worked its magic now that people are comfortable to invest thinking that it Bitcoin has even considered as a commodity.
