The value of the entire cryptocurrency market lifted with a rise in the value of Bitcoin on Saturday.
Bitcoin surpassed $48,000 over the weekend, its highest level since May, but trimmed some of those gains on Monday.
On Saturday, the digital coin hit $48,126.47, its highest level since May 17, according to Coindesk data. Around 9 a.m. ET on Monday, bitcoin was trading at $47,263.35.
The bitcoin recovery comes after it sold off heavily in June and July, dropping below $30,000 following a record high of over $64,000 in April.
According to CoinMarketCap, which tracks the prices of cryptocurrencies – it happened for the first time since mid-May.
In recent months the crypto market has faced numerous headwinds. But the biggest one was the changed regulatory scrutiny on the industry from authorities in China.
This further forced Bitcoin mining operations to shut down and move elsewhere. Because of this Bitcoin kept on dropping below the $30,000 level.
In the meantime, the US Senate passed a huge infrastructure bill last week. It did not propose amendments on crypto tax reporting that had delayed its passage.
For some, it was a blow for the crypto community but for others, it showed the US government was taking the industry seriously.
Jehan Chu, the founder of venture capital and trading firm Kenetic Capital said – these “fundamental regulatory roadblocks” have “clipped the market’s wings” in the near term.
He also said that bitcoin may reach $55,000, hence investors should expect a “significant pullback to sub-$30,000 levels, resetting the stage for a long steady march” to $100,000 in 2022.
And when the hackers stole $600 million in one of the biggest cryptocurrency heists in history, more negative news started coming.
But the company was taken by surprise when the hackers returned nearly all of the stolen money eventually.
This didn’t seem to faze the bitcoin bulls.
Luno’s Ayyar said bitcoin is approaching resistance levels between $48,000 and $50,000.
“I wouldn’t expect bitcoin to run through in one shot,” Ayyar said, adding that if it does break that level of resistance, then the digital coin is “definitely looking to go back to all-time highs.”