Bitcoin is back and with Bitcoin come the Altcoins again. But what drives the cryptocurrencies? It seems that cryptocurrencies are slowly recovering.
Bitcoin is currently stable at the $ 8800+ and the majority of Altcoins, which have seen significant gains in recent weeks, are finally recovering a healthy positive correction.
1. Regulations
Global regulation not only causes fear among crypto investors, it also helps institutional investors enter the crypto market. Fran Strajnar, CEO of Brave New Coin, told Forbes:
Bitcoin is rising for a variety of reasons. The US regulates tokens that are classified as securities and not such tokens that are considered utilities, and at the same time major investors enter the market. The Soros and Rockefellers of this world are interested in the market, whereby Bitcoin & Co. are accepted as investments and the market responds positively.
Adam Fisher of Soros Fund Management has probably received internal approval for digital currency trading.
2. Institutional investors
Institutional investors are interested in Bitcoin and other cryptocurrencies. As a result, other, smaller investors are encouraged and they are also taken out of the market. This explains Eiland Glover, CEO of Blockchain platform Kowala:
The word is that the traditional players in the financial industry are preparing to enter the crypto markets soon. This promises greater liquidity and a ‘tsunami’ of new money … and drives up prices.
And indeed, the mass that caused an all-time high for Bitcoin in December is back. A survey by Canadian company Thomson Reuters revealed that 20 percent of its 400 customers are considering entering the crypto market within the next six months.
3. The market is maturing
Perhaps the most important thing is that the crypto market is slowly maturing. Investors understand through the maturity process, which phase you are in and where the journey is going. Rob Viglione, co-founder of ZenCash said:
People are slowly coming back to the market. The world’s increasing regulation has burdened the crypto prices in the last quarter, but in recent weeks the price has remained relatively stable.
