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Bitcoin Breaking Out from the Rest of the Cryptocurrencies

A study by Barron’s, a leading newspaper in finance and business, found that Bitcoin current market trend is independent of other crypto markets. This could be “a regulatory relief rally.”

Bitcoin’s price surged 26.9% in March, thanks to an 11.6% rally one week ago. Bitcoin is currently trading at $57,261, up 3.47% since the beginning of the day. It has also surpassed $1 trillion in market capitalization. Altcoins like Cardano and Ethereum have struggled to keep up with the market, adding 21% and 13% in the past 10 days, respectively.

Barron’s analysis suggests that Bitcoin appears to have passed technical resistance levels. He also suggested that if the gains are sustained, higher levels could still be possible. The article then explains that Gary Gensler’s statements made during his appearance before Congress may have contributed to the market rally.

On Tuesday, the SEC chair Gary Gensler said that his agency did not intend to ban cryptos. Gensler replied to a question by Patrick McHenry about whether the SEC would ban cryptocurrency. Gensler did however leave some concern for the industry, as he said that the commission still had cryptocurrencies it considered securities.

The study found that Bitcoin’s dominance may be supported by a recent bill that was drafted in Congress. Rep. Patrick McHenry (R.N.C.), introduced the bill to give new cryptocurrency startups a 3-year window to grow without worrying about regulatory action. The bill will ultimately provide a “safe harbour” for new projects that want to become decentralized.

The lack of regulatory clarity in the U.S. has been a problem for the industry. The apex regulator has always dealt with the growing industry using a “regulation and enforcement approach.” But, recent trends and statements suggest that institutional investors might finally feel confident enough to enter the market, pushing it upwards.

This sentiment is also shared by key market observers. MicroStrategy CEO Michael Saylor believes that Bitcoin’s regulatory status has made it the preferred choice for institutional investors.

He tweeted that “Bitcoin has broken out from other cryptos because of regulatory expectations, making them the clear choice for institutional Investors seeking digital property to store value,”