Daily Bitcoin News Update
Cryptocurrency markets are finally recovering from the massive price slump of early February. The Bitcoin price made a robust advance over the weekend to cross $11,000 for the first time after the crash.
Even though prices are finally reversing their course, the crash remains fresh in our memories. The precipitous drop investors faced was no less than bungee jumping from the Eiffel Tower. The setback scared investors out of their wits.
In hindsight, we learned a simple lesson the hard way. That is, government policies drive investor sentiments in the crypto space, which in turn drive crypto prices.
Case in point; investors of the “decentralized” Bitcoin are largely “centralized” in four countries—the U.S., South Korea, China, and Japan—where governments have been pulling the strings on crypto prices from behind the curtains. To gauge their influence, simply take note of the fact that a sheer rumor of a crypto ban in South Korea was enough to spark a massive sell-off.
So, following the crash, we’ve been on the lookout for new markets for Bitcoin, markets where governments are more flexible in allowing Bitcoin to become more than just a vehicle of investment and serve its true purpose of a digital unit of money.
Because as Bitcoin enters new markets, we’ll see this geographical influence over prices diminish over time. That’s when Bitcoin prices may foster stability.
In the past month or so, three emerging markets have appeared on the scene—Russia, Africa, and India. Demand flowing in from these new markets may put a bottom under BTC prices.
Chart courtesy of TradingView.com
To begin, take the example of Russia and India, where it’s not just people taking interest in cryptocurrencies; both Russian and Indian governments are considering creating their own cryptocurrencies.
Governments in both countries are showing a willingness to make the environment more conducive to crypto trading. Just last month, we heard that Russia’s largest state bank is launching its own crypto trading platform.
Meanwhile, the Indian government put all rumors to rest after confirming that it had no plans to ban cryptocurrency trading. This week, India’s Prime Minister Narendra Modi acknowledged in a tweet that the country must rapidly adapt to disruptive technologies like blockchain.
Now, pan over to Africa, where Bitcoin’s mainstream adoption is unprecedented as people choose to not only invest in Bitcoin, but actually use it for purchases. This has become possible as smartphones become ubiquitous in the region.
A growing number of unbanked Africans are choosing to pay via their handheld devices, mostly in cryptocurrencies. In countries like Zimbabwe and South Sudan, where local fiat currencies have lost value, digital cryptocurrencies have emerged as reasonable alternatives.
On top of that, the regulatory environment is lax as the governments choose not to interfere. In the affluent South Africa, the finance minister reaffirmed that the country would be taking a “balanced position” on cryptocurrencies.
All in all, Bitcoin is seeking new markets in a bid to loosen the grip of its four biggest markets over its price. And from where we see it, it’s succeeding. Russia, Africa, and India are the emerging crypto markets where Bitcoin may see immense growth in the coming days.
As Bitcoin creates organic demand in new markets, we expect BTC prices to shed volatility and foster more predictability. Our Bitcoin price prediction is optimistic for 2018 with a BTC price target of $15,000.