Bitcoin has broken above $8000 in a rare rally in many months buoyed by the news that G20 ministers do not consider cryptocurrencies a threat to the existing financial order. Bitcoin, EOS and third place Bitcoin Cash, a bitcoin spinoff with less than a year in existence are leading the rally with 5.5%, 7.2% and 7.7% gains respectively over the last 24 hours.
It is the second day of the week cryptocurrencies are trading firmly on positive territory after a generally bearish first half of the year.
Second-placed Ethereum is currently trading at $473 having climbed more than 4% in the last 24 hours. Litecoin has also made a 5.7% surge against the US dollar to trade at $87 a unit.
Other notable gainers are Zcash with gains of more than 10%, Tron at 8.9% and Stellar Lumens at 7.6%. Monero is trailing at about 3.8% and IOTA and XRP at 2.1% and 2.9% respectively but they have both started to gather steam in the last few hours. NEO is performing rather dismally with just about 2.9% rise in value.
Bitcoin has traded well below the $8000 level since May 23, a period of two months. Overall, Bitcoin has gained more than a fifth of its value in the last one week. The positive news from the G20 may have helped to boost values but there is also a clear pattern of steady recovery over the last one week.
Approval of ETFs
Expectations over the possible approval of ETFs has played a big part in the rally. But Tuesday’s surge is largely due to the positive news from Buenos Aires. By the look of things, regulations that might stifle the growth of the industry seem to be far off. Let’s not forget that the market has largely been shaken by fear over regulations.
Indeed there have been some tough pieces of regulations such as in Japan and South Korea which restricted the cryptocurrency space. Whereas these pieces of are meant to safeguard investors and rein in on criminals, their consequences are nevertheless felt across the industry.
Even more serious was the total ban on cryptocurrencies in places like China.
The highly volatile market is particularly sensitive to news. So when the G20 ministers issued a communique saying that cryptocurrencies did not pose a global financial stability risk, it was greeted with a lot of excitement on the cryptocurrency community as seen in the rapidly rising volumes.
While the statement is not entirely surprising, it was still unexpected given that the same meeting had called for more regulations a few months ago. It has not entirely left this stance, however – instead, it has urged for more “vigilance” over the sector.