Prices of bitcoin BTC token, as well as other cryptocurrencies, launched themselves up over the previous week. The start of August proved to be a great time for bitcoin bulls, as the last remnants of an already shaken bear market came to a close. Now, even with new waves of volatility, bitcoin appears to be closing onto the psychological barrier of 50,000 USD. That is occurring for the first time since the middle of May when the 2020 bull run reached its plateau and started moving in the opposite direction. The present crypto rally is important not just for the investors and traders, but the border narrative around cryptocurrencies, as it negates the concept of a new Crypto Winter.
Instead of a prolonged period of the price slump, the markets took some three months to even out the drop of over 50 percent across the crypto board. The current rally is also essential to the narrative of a maturing market because the rise in prices has not been triggered by any positive movement within the bitcoin network. Previously, that kind of event was the main engine of price movement, but now, it can be argued that development in the second-biggest cryptocurrency actually enforced the same rebound. That network is ethereum and its recent successful London hard fork. But, whatever the main reason for the surging crypto price might be, the fact remains that the bear market narrative is slowly but steadily crumbling into the past, while most are bracing for a new wave of crypto price hikes.
Prices Soaring High
The most recent rise in prices has a natural aim in mind when it comes to bitcoin at least. That is the number of 50,000 USD, which has not been seen for nearly three months. Yet, the price rise has not been led by the biggest cryptocurrency network in the world. Instead, dogecoin, uniswap, and the second-biggest crypto network, ethereum, have all provided that essential liquidity into the markets. Analysts believe that these networks added up to 300 billion USD to the markets in the last seven days alone.
Ethereum was probably the most visible among these networks with its successful and closely-watched upgrade. That process once more livened up the discussion about the far future of the crypto ecosystem and whether or not ETH token could become the new BTC in terms of not just value, but also relevance in the technical sense. This debate is loosely called flippening and has been going around for some time. But, there is no doubt that the London hard fork managed to spur on not just ETH, but many additional cryptocurrencies as well. That is why almost all of them took up in terms of price value and market capitalization.
The rise of the prices is taking place even though there are some fears about the prospect of a change in crypto taxation in the US. There, a legislative battle is underway in regards to the process of taxing cryptocurrency trading profits. The stricter rules on taxation of crypto profit use a wide definition of what brokers are. Because of that, some believe that the change could put too much pressure on crypto mining, as well as crypto wallet providers.
This is all inside of the Infrastructure Investment and Jobs Act. Some believe that it threatens the potential for cryptocurrency and blockchain development in the US. However, others underline that there is a market necessity for the regulation of crypto profits, even if they might be under pressure from those changes in the short term. But, a lot of cryptocurrencies simply shrug off those fears. Like it often happens in the domain of esports and other novel but popular technologies, a strong stream of positive news presently is overtaking any negative sentiment. So, the traders and investors are willing to bet their money that the process of legislative change is not going to influence the markets in a negative way, especially in the months to come.
Ethereum, but also uniswap token and dogecoin all managed to make huge gains in the previous period. Each of these coins took off and did it for around 20 or even 30 percent. Other altcoins are also doing very well, with things like BNB from Binance, XRP, and Cardano up between 5 and 10 percent. Experts are also pointing out that the crypto markets could be bolstered by the amendment in the infrastructure bill in the US legislative circles.
The same support, as some see it, would be crucial for the further movement up, which at the present moment would include a target of 50,000 USD or even a range slightly above it. The price rise would spur on the altcoins as well, which would likely see ethereum go for new record values before the end of the year, even if the BTC token price remains below or around its previous best results in terms of fiat price.
In the next couple of weeks, it appears almost certain that the crypto regulation inside of the US will be the key element to a further rise in prices or their potential retracing back to older support lines. Presently, many voices inside of the industry, as well as long-time supporters of crypto are calling on legislators to move carefully. Among them is Elon Musk, the CEO of Tesla Motors, which alone holds in its corporate coffers some 1.5 billion USD worth of crypto. He said that the legislation and its concept of a broker might force the crypto industry to label companies as winners and losers.
That could become a huge calamity for the next steps in crypto development not just in the US, but across the globe. Others, including officials from Coinbase, also said that the legislation could become a backdoor ban on bitcoin in the right circumstances. It goes without saying that the entire crypto community would be greatly damaged with such a prospect. So, the early autumn and resolution to the present crypto legislative dispute will define the next steps of the crypto prices.