Rumors suggest that bitcoin’s latest price record is catapulted by China potentially lifting its current ban on cryptocurrency trading platforms. Meanwhile, Russian president Vladmir Putin said the country will regulate cryptocurrencies.
For the first time since early September, bitcoin soared passed the $5,000 threshold on Thursday (October 12) to reach yet another all-time high of $5,386.23.
Last month, the Chinese government and the People’s Bank of China banned the exchange of bitcoin as well as other cryptocurrencies and the Chinese Yuan and shut down some of the largest global cryptocurrency trading platforms, while it also halted initial coin offerings. Still–the digital currency has still been able to break another record.
According to data from Coindesk, bitcoin tokens started the day at $4,830.77 and subsequently surged by roughly $555 to reach its latest record. Since then, bitcoin tokens ave dropped slightly back to $5,320.01 as of 6:52 p.m. EST.
Cryptocoinnews.com reported last week the possibilities of China lifting the ban “in the upcoming months.” According to the publication, trading will resume on the basis that Know Your Customer (KYC) and Anti-Money Laundering (AML) systems will be in place.
According to CNBC, Aurelien Menant, CEO of Gatecoin, said that “speculators are bullish on bitcoin’s value,” particularly as it pertains to the Chinese government reintegrating it into the global market.
Similarly, Forbes reported that “the worst is over” for the digital currency because it has proven it can still break record highs “even as big governments–like the Chinese government–go against it.”
Case in point, bitcoin’s price rally this week also comes in the wake of Russian president Vladmir Putin’s comments criticizing the digital currency in regards to a meeting held on Tuesday (October 11) about cryptocurrencies.
“Cryptocurrencies are becoming and have already become more popular. They have already become or are turning into a full-fledged payment instrument and an investment asset in certain countries. At the same time, use of cryptocurrencies also carries serious risks,” Putin was quoted saying.
By Thursday, however, the Russian president’s mind had changed slightly, stating that cryptocurrencies will “officially be regulated in Russia.”
“The state should regulate the process of issuing cryptocurrencies, the process of mining, the process of circulation…The state should head this situation and regulate it legally,” Putin said, as per Bitcoin.com.
Bitcoin has climbed over 430 percent from $997.69 on January 1.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.