The price of bitcoin has rebounded and stabilized above the $10,000 mark for the first time in over two weeks. After bitcoin dropped as low as the $6,000’s in early February, this rally and subsequent price stabilization come as a relief to many investors, especially those who only recently started to invest in this asset class.
Bitcoin’s decline in January was largely driven by fears of a severe regulatory crackdown on cryptocurrencies. However, statements coming out of Davos and the U.S. Senate hearing point to a more reasonable cryptocurrency regulatory framework composed of standard AML/KYC requirements on exchanges, which largely exist already, and new taxation laws that will incorporate cryptocurrencies in capital gains and income tax filings.
Since the doom and gloom sentiment has seemingly passed, bitcoin – and with the altcoin market – are back on an upward trajectory as optimism has returned back in the digital asset markets.
Bitcoin (BTC) gained 28 percent week-on-week, while this week’s top ten altcoin outperformer was Litecoin (LTC), which rallied by over 48 percent after a controversial hard fork that created Litecoin Cash took place.