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After falling to less than $ 7,300 on most cryptocurrency exchanges, the price of bitcoin climbed 7% from $ 7,240 to $ 8,467, triggered by a variety of factors .
Many analysts have attributed the recent rise in the price of bitcoin to the outcome of the G20 summit in Buenos Aires in 2018, during which the Financial Stability Board (FSB), the global supervisory body that supervises banks and financial networks. representative of 20 major economies, said that existing regulations on cryptocurrency like Bitcoin will be held and no additional restrictions or regulations will be issued.
The official report of the FSB referring to the president of the FSB and the governor of the Bank of England Mark Carney read as follows:
“The initial assessment of the CSF is that crypto-assets pose no risk to global financial stability for the time being.However, the market continues to evolve rapidly and this initial assessment could change if crypto-assets become much more widely used or interconnected with the core of the regulated financial system. “
Previously, until this week, several analysts noted that the next meeting of the G20 had contributed to the decline in the value of cryptocurrencies, investors anticipating the financial supervision of the G20 FSB to crack down on cryptocurrencies and enact stricter regulations. Investors were expecting major economies to come together to regulate the global cryptocurrency market with tougher policies.
However, governments have decided to accommodate existing regulations in the global cryptocurrency market, which are already strict in regions like the US and Japan, and follow the roadmap the main cryptocurrency markets. class of emerging assets.
It is highly unlikely that the G20 meeting was the only factor behind the recent spike in bitcoin prices and the overall cryptocurrency market. But the cryptocurrency market needed optimistic and positive development to regain an upward trend after being in a slump for more than a week.
As a result, the valuation of the cryptocurrency market has recovered beyond $ 310 billion, after falling to less than $ 280 billion, and is considering a short rally. term.
In previous reports, the SCC noted that the January correction would take several months to recover, as many investors have been affected by the cryptocurrency price decline. In 2017, the cryptocurrency market was considered the path of short-term profits. In early 2018, investors stated that they viewed the market differently and that speculators or weak hands had left the market.
2018 saw significant developments in bitcoin, Ethereum, and other major cryptocurrences with emerging blockchain technologies. Still, the price did not represent the magnitude of the developments that took place in space, most likely because speculators and weak hands were not interested in technology, but rather by short-term profits.
In the short term, given the continued rise in the bitcoin dominance index, it is likely that bitcoin will continue to dominate the market in a volatile period such as this one. this. The Bitcoin dominance index is already at 44%, and has risen since February, as more and more investors have begun to consider bitcoin as a safe investment compared to other cryptocurrencies.
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