The digital currency had a 6 percent surge in its price from last week. It started the week at the $6,600 mark and it is currently hovering around the $7,024 mark. However, the coin is still down by 50 percent from its price in January. And 64% down from its peak price in December.
The 6% surge in the price of bitcoin is attributed to the reopening of South Korea-based Bithumb’s registration portal. The exchange was demanded to stop accepting new customers by its partner Nonghyup Bank after it had been hacked in June. The hack caused the exchange to lose about $30 million. The report suggest that the exchange had resumed accepting new customers.
A statement made by the founder and CEO of BKCM Brian Kelly claimed that the analysis of the bitcoin market showed that most of the trading of bitcoin this week is concentrated in Asia. Kelly confirmed that the surge in bitcoin trade is because South Korea exchanges are coming back online.
CoinMarketCap reports show that the daily trading volume of Bithumb had fallen to around $72 million during its ban on new customers. However, the commencement of normal activities by the exchange has increased its daily trading volume to $362 million.
South Korea’s Influence on the Bitcoin Market
South Korea remains the fourth biggest bitcoin market even though the government had introduced tougher regulations on the trading of cryptocurrencies. The nation’s financial regulator had ordered local banks to scrutinize all crypto exchanges done through their platforms. Korean’s anti-money laundering laws were stated as the backing for the implemented decree.
However, the new regulation sparked lots of debate in South Korea and a total of 280,000 people signed a petition. Thus, demanding the government to withdraw the regulation.
The increase in the price of bitcoin was also attributed to the news that institutions are interested in crypto investments. One such development is the announcement made by Goldman Sachs that it is planning on holding cryptocurrencies on behalf of funds betting on crypto assets.
Do you want to list your best crypto related story? Get it listed here.
Image Source: Bitcoin Price