Bitcoin reached a three-week high on Tuesday after a surge of nearly 100% from its lowest point this year.
Its recovery continues after financial regulators in South Korea reportedly abandoned considerations of shutting down digital currency exchanges and eased its stance on cryptocurrency.
South Korean news agency Yonhap reported that the governor of the Financial Supervisory Service Choe Heung-sik said the government would support cryptocurrency trading if “normal transaction” are made.
Managing director at online brokerage UFX.com in Limasso, Cyprus Dennis de Jong said: “While the threat of heavy regulation, or even a total ban on exchange trading, has hovered over bitcoin in recent weeks, reports this morning that the South Korean government are softening their stance have given traders confidence to buy.”
Reports say South Korea has been pushing for broad regulatory supervision of cryptocurrency trading after locals, including housewives and students, entered the market despite policymakers’ warnings about the risks.
Previously bitcoin markets were thrown into turmoil and bitcoin markets were hammered after Seoul stated it was considering closing down local cryptocurrency exchanges. An outright ban has since been on the table but a final decision is yet to be made.
On the Luxembourg-based Bitstamp exchange, bitcoin hit a three-week high of $11,722.58 BTC=BTSP on Tuesday. It last increased to 3.4% at $11,555.Bitcoin has surged nearly 100% from this year's low of $5,920 in early February.
According to Canaccord Genuity’s latest research note, bitcoin’s price history proposed that months of consolidation are succeeded by weeks of quick advancement.
“The safest way to benefit from potential bitcoin price appreciation is to buy and hold for the long term; trying to time it might be too difficult,” said the investment service company.
This year bitcoin has been pressured by a string of regulatory initiatives around the globe. These have included incidences of hacks on exchanges. The most recent hack occurred a few weeks ago when Tokyo-based cryptocurrency exchange Coincheck was robbed of close to $532.9 in digital money.
Other digital currencies have, however, showed mixed results. For example, the second-largest digital currency by market value decreased by 1.3% over the past 24 hours at $935.02 while Ripple, the third-largest, was down 1.6% to $1.13.
This is according to cryptocurrency price tracker coinmarketcap.com.
Litecoin, the fifth largest cryptocurrency by market capitalization, was one of the biggest gainers with a 9.3% rise at $246.03. The currency jumped as much as 10% after a “hard fork” resulted in the creation of a new cryptocurrency called litecoin cash.