The popular cryptocurrency still has a way to go to get back to its historic price level of nearly $69,000, set in November 2021. 

It appears that Bitcoin and other cryptocurrencies are shaking off the doldrums from scandals like the collapse of Sam Bankman-Fried’s FTX crypto exchange and numererous issues with Binance and other exchanges.

In short, the entire unregulated crypto industry was turning into the Wild West, and it prompted regulators to step in.

Some of the key regulatory concerns have been:

1. Investor Protection
   One of the primary regulatory concerns is ensuring the protection of investors and consumers in the cryptocurrency space. Cryptocurrencies are known for their volatility and susceptibility to fraud and scams. Regulatory authorities aim to establish safeguards to prevent fraudulent activities, market manipulation, and Ponzi schemes. They may require cryptocurrency exchanges and other service providers to implement anti-money laundering (AML) and know-your-customer (KYC) procedures to verify the identity of users.
   
2. Financial Stability
   Governments and financial regulators are concerned about the potential impact of cryptocurrencies on the stability of traditional financial systems. The rapid growth and adoption of cryptocurrencies could pose risks to financial stability if not properly regulated. Authorities may worry about issues such as the potential for cryptocurrencies to be used for money laundering, tax evasion, or as a means to bypass capital controls.
   
3. AML/CFT Compliance:
   Anti-money laundering (AML) and countering the financing of terrorism (CFT) are significant regulatory concerns related to cryptocurrencies. Regulatory bodies often require cryptocurrency businesses to adhere to AML/CFT regulations to prevent these digital assets from being used for illicit purposes. This includes reporting suspicious transactions and complying with international standards for financial regulation.

With regulatory policies kicking in, coupled with the emergence of new cryptocurrency ETFs, Bitcoin and other cryptos are making a comeback. Since October 2023, here’s how some other cryptos have fared:

• Ethereum (ETH/USD) has climbed 51% from $1,548 to $2,340
• XRP (XRP/USD) jumped 36% from .47415 to .64521
• DOGE climbed 68% from 8.267B to 13.883B

Gold Is Also on the Move

Gold has also move up above the key $2,000 level, and is currently priced at $2,029 – up 11 percent since October.

Gold is rising on geopolitical tensions, interest rate concerns and U.S. dollar strength issues.

Conclusion

Gold, Bitcoin, and cryptocurrencies have all emerged as potential safe haven assets in today’s volatile financial landscape. 

Gold, a traditional store of value for centuries, retains its reputation for stability and is often seen as a hedge against inflation and economic uncertainty. 

Bitcoin, on the other hand, has gained traction as “digital gold” due to its limited supply and decentralized nature, making it an attractive option for those seeking a modern safe haven. 

Cryptocurrencies, as a broader category, offer a diverse range of assets with varying degrees of stability, with some investors considering certain cryptocurrencies as a form of protection against economic turmoil. 

While these assets share the potential for safeguarding wealth during turbulent times, it is important to acknowledge that they also carry risks and uncertainties, and their effectiveness as safe havens can vary depending on the specific economic and geopolitical conditions. As such, individuals and investors must carefully evaluate their risk tolerance and diversify their portfolios accordingly when considering these assets as safe havens.

The post Bitcoin, Cryptos and Gold on a Tear appeared first on Global Investment Daily.

Then on Monday. October 16, Bitcoin broke through the 200 SMA, and a frenetic rally followed.

What’s Behind this Rally?

Fast Company reports that an uptick in demand is being fueled by investors anticipating the approval and listing of Bitcoin ETFs. 

Reuters suggests that Bitcoin can be ‘immune’ to the same risks that led to the demise of Silicon Valley Bank, Credit Suisse and Signature Bank.

“Bitcoin’s recent bull run looks to be mainly supported by individual investors – ranging from retail to whales – as we have seen evidence of institutions exiting during this rally,” said Zhong Yang Chan, head of research at crypto data firm CoinGecko.

Crypto skeptics aren’t convinced.

“It’s rather narrow-minded to say that bitcoin is going to succeed because a bank failed,” said Usman Ahmad, CEO of Zodia Markets, the crypto exchange of the venture arm of Standard Chartered (STAN.L) and Hong Kong crypto firm BC Technology Group.

“But confidence is almost a critical factor – confidence in the banking system has been damaged.”

Whether you’re a fan of Bitcoin or not, the bulls are clearly in charge, for now.

A Short-Term Technical Outlook fo Bitcoin

While Bitcoin shows no stopping in growth, a small pullback to the 32500 level isn’t out of the question.

When you look at the 8 Exponential Moving Average (8EMA, shown in purple), notice how price has a tendency to hug that line. The 3 EMA also has a tendency to hug the 8 EMA. When the 3 EMA gaps away from the 8 EMA, price usually snap backs like a rubber band being stretched and released. It’s mean-reversion in motion. If that happens, then we will witness a short-tem pullback from 34299 baack to somewhere around 32500.

After that, it’s anyones guess, but I plant to keep an eye on the 50 SMA, plotted in white. If it crosses the 200 SMA, then a “Golden Cross” is in play, which could fuel the resumption of a rally.

Bear in mind that all trading involves risk. Never trade with funds you cannot afford to lose.

Stay tuned to Global Investment Daily as we monitor the recent rally in Bitcoin and other cryptos.

The post What’s Behind the Bitcoin Rally? appeared first on Global Investment Daily.

Simply put, the Bitcoin bubble burst in 2022, collapsing from $65,000 all the way down to $15,000 per unit.

All of the sudden, Bitcoin and other cryptocurrencies rebounded in 2023.

Sin January, Bitcoin has shot up from $17,000 to $28,000 in the first quarter alone. That’s a staggering 65% increase in value in just over 3 months.

Some of the possible reasons for this include:

• The collapse of Silicon Valley Bank, Signature Bank and the takeover of Credit Suisse. With fears of banking collapse contagion in the waters, investors may have turned to Bitcoin as a safe haven investment.
  
• Others may have seen Bitcoin as a steeply discounted investment play after its price tanked following the FTX debacle.
  
• Still others saw Bitcoin as a hedge against inherent problems with  the Federal Banks. Interest rate hikes also may have made crypto currencies a more attractive investment

(Source: CNBC)

What does the future hold for Bitcoin, Ethereum and other major cryptos? That’s anyone’s guess. It is still trading at greater than a 50% discount to its previous all-time high of $65,000 and the journey of cryptos has been a roller coaster ride.

Stay tuned to see how Bitcoin fares for the remainder of 2023.

The post <strong>What’s Driving the Sudden Rise in Bitcoin?</strong> appeared first on Global Investment Daily.