BY: Yinka Okeowo
As you may have noticed this week, bitcoin has surpassed the $7,000 mark, marking its highest price since mid-March after the coronavirus sent its price below $5,500.
Bitcoin positive momentum accelerates above the $6400 mark where the crypto pair established a strong base.
South Korea started a pilot program for its national digital currency. The Bank of Korea announced the launch of this program earlier on Monday.
The program will be set up and tested through 2020. The Bank of Korea announcement followed the approval of the legislation by the Korean government to regulate cryptocurrencies.
Digital assets are on positive foot on Monday. Ethereum is 5.19% higher at 150.45, Litecoin (LTCUSD) is 3.94% higher at $41.97 while Ripple (XRPUSD) is 3.90% higher at 0.1864, according to report by investingcube.com.
Luno’s General Manager for Africa, Marius Reitz, commenting on what this means for the market, said, “It was always seen as a psychological barrier but for Bitcoin to go through the US$7,000 barrier and look as though it will be able to maintain this level is very important for cryptocurrencies”.
He continued, “BTC is now trading at US$7,290 with main commentators suggesting that the coin can now push up towards US$8,000. The other main coins have also found buyers and Ethereum is at US$169, XRP at US$0.169 and Bitcoin Cash at US$254.
“There are a number of indicators which could lead to the Bitcoin price continuing to rise. Trading volumes are much lower than we have recently seen but the futures market in Bitcoin has stabilised and back to expected levels”.
Reitz added that with the price increase miners are returning and finally investors will see that cryptocurrencies can rebuild value more “quickly than other asset classes.”