As was posted by myself, and others, February 6th turned out to be an important date for cryptocurrencies.
Not just for calling a bottom in prices, but because we finally got past a date that provided some major uncertainty.
I first mentioned it here:
Basically, it turned out to be a day of not so much what did happen, but instead, what didn't happen.
The Senate Committee Hearing on banking and cryptocurrencies turned out to not provide the fireworks that some were fearing, at least to the downside.
Instead, they basically acknowledged that bitcoin and cryptocurrencies are a legitimate asset class that is likely here to stay.
Phew.
Crisis averted?
Some were fearful that the SEC and/or the CFTC might offer some heavy handed remarks that would further push prices down at a time when they were already sitting at 2 month lows.
More bad news when prices are already down 65% isn't a very welcome thought for most people.
However, as it turned out, sometimes what you don't say is more important than what you do say.
Overall, nothing earth shattering, ground breaking, or even outright positive was said.
However, once that uncertainty and fear of the unknown was removed, prices were allowed to rebound, and rebound quite significantly!
After hitting a low around $5,900 yesterday morning, bitcoin prices are currently trading around $8,400.
A bounce of $2,500, or about 48%!
More good news on the horizon?
Now only are we finally past February 6th, but we are also inching closer and closer to the Chinese Lunar New Year, which is February 16th.
More about that can be read here:
https://steemit.com/cryptocurrency/@jrcornel/february-16th-is-a-very-important-date-for-the-cryptocurrency-markets
Yes, China is doing their best to keep their people from purchasing cryptocurrencies, however, that likely won't stop every one.
Once we get past that holiday there is likely to be a lot of fiat money from that entire region looking to get back into cryptocurrencies.
It won't happen exactly on that day, but as you are seeing currently, much of the selling from that area has likely finally dried up.
What that means going forward?
That is impossible to predict in terms of bitcoin's price or steem's price or any other cryptocurrency.
But, given the current market environment and where we are going seasonally, I would not be surprised to see things turn decidedly more bullish for bitcoin and the entire space over the coming weeks/months.
Not only that, but you can even see a change in the headlines today vs. the last few weeks.
There are quite a bit of positive headlines out there today whereas it was nothing but negative headlines before.
Heck, even this one calling for bitcoin $50k by the end of the year came out this morning.
https://www.cnbc.com/2018/02/07/bitcoin-price-could-hit-50000-this-year-experts-say.html
I'm not sure bitcoin gets that high, but I also didn't think it would hit $20k last year and there are certainly a lot of days left this year, so you never know.
If bitcoin were to hit $50k this year, I can't imagine where steem might trade to with all the positive developments coming over the next few months.
Here's to hoping!
Stay informed my friends.
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