After weeks of hearing worse news day by day, it seems crypto traders may have a reason to start hoping again. While it is far from the miraculous recovery that all investors are praying for, at least it’s not getting any worse.
After another disheartening weekend on the crypto front, there was a bit of a rally by the larger coins, with Bitcoin, especially, showing signs of strengthening. How long this will hold is anybody’s guess, but considering the way things have been going lately, waking up to no fresh bad news is surely a welcome change for investors.
Signs of Recovery for Bitcoin
Leading the pack, as usual, Bitcoin has started to show promising signs of improvement. After falling to another record low over the weekend, it rose by a very significant 1.6% early Tuesday morning. Initial fears that it might be just a blip before falling again were laid to rest, as the currency held above the $20,000 mark, even trading at $20,665 in Tokyo.
Other Altcoins, such as Solana and Polkadot, also showed promising signs of recovery, which further renewed hope that this might be the sign the industry was waiting for. However, with the economic climate as full of uncertainty as it is at the moment, it will take a lot more than just a few gains to restore investor confidence.
Looking at the data from the last couple of days, Marcus Sotiriou, of GlobalBlock, said a temporary bottom could be near, by which he means a short break from the sales avalanche that has plagued the crypto market over the last couple of months.
However, with central banks around the world still hell-bent on fighting the global inflation crisis by draining liquidity, all the positive strides taken by the crypto industry could very well be reversed by the end of the week.
Bitcoin May Come Out on Top After All
Whichever way it turns out, Bitcoin investors will be hoping this is a sign that the popularity and market strength of the currency will prove to be enough to guarantee its survival. These hopes will surely be given a major boost if two of Bitcoin’s competitors, Terra (LUNA now branded as LUNC), and Celsius (SELH) are subjected to further regulatory action as is expected.
The host of the Coin Stories podcast, Natalie Brunell, seems to think that is exactly what will happen in the coming months. She said she will be watching the developments in regulations very closely. If her assumptions are correct, we could see Bitcoin being regarded as digital property, while other currencies are deemed to be mere securities.
While there is certainly nothing wrong with investing in securities, crypto investors will most likely turn to Bitcoin due to its added security, as compared to other cryptocurrencies, which have proved to be very volatile and susceptible to market fluctuations.
Meanwhile, In South Korea…
While the market waits to see what the coming days will bring in terms of movements and price increases, South Korea has been dealing with the situation in its own way. It has now emerged that some employees of Terralabs, the South Korean company that developed TerraUS, have now been placed on the no-fly list by the Korean government, effectively barring them from leaving the country.
Readers may recall that it was the collapse of TerraUS’ paired token, LUNA, and the subsequent sell-off frenzy it created that was one of the chief sources of the panic that eventually lead to the current crypto-crisis being witnessed today. According to reports coming out of the country, Korean officials have placed these individuals under the no-fly list pending further investigations.
Developments, such as those we are seeing in South Korea, would seem to support Natalie Brunell’s theories regarding imminent regulations being on the horizon for Altcoins and other lesser cryptocurrencies.
What this would mean for the fortunes of Bitcoin, which is spearheading massive recovery efforts for crypto, is yet to be seen. It is also not clear whether any new regulations would also include the bigger platforms, such as Bitcoin and Ethereum.
However, one thing is clear, and that is the crypto marketplace has never been in such turmoil as it is now. If something is not done, and soon, the market recovery that investors are waiting for might never come to pass.
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