Confidence Is Back With Bitcoin. Or is it?

Confidence in the market is beginning to improve after Bitcoin retraced by more than 50% since its previous all-time high of $64,000. Chinese market influence and hegemony are retracing after making Bitcoin and crypto transactions illegal. Bitcoin’s market sentiment flipped to bullish after a month of negative appearances, reclaiming the $50,000 mark on October 5th.

Bulls Before Bears

As the leading cryptocurrency by market capitalization, Bitcoin has a tendency to drop off and show an unexpected side in the market. However, Bitcoin’s uprise was catalyzed mostly by positive reinforcements from U.S. regulatory bodies, including the SEC.

Although the SEC’s Chairman, Gary Gensler, referred to crypto as a wild west, drawing comparisons to the early days of capitalism, his latest comments rippled the market. said in a Washington Post interview that the U.S. does not intend to ban crypto in a similar way to how China chose to address the notion of decentralization. In turn, the SEC notes that tokens do meet several criteria of being investment contracts or bills, and the SEC is seeking to bring crypto “within the investor protection remit.”

Tyler Durden noted that the SEC’s more positive attitude towards crypto helped funnel more positive momentum for Bitcoin. In addition, the current reverberations from the U.S. government are in antithesis with China, as it helps to stabilize Bitcoin’s volatility and increase investor trust.

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Investor’s Gain Momentum

The crypto market registered record outflows during June and July as investors sought safer financial havens, repurposing Bitcoin as a hedge against inflation. Will Clemente noted that miners have stopped selling BTC after a “few weeks of selling” and started accumulating again. Additionally, the Riot Blockchain mined a total of 406 BTC and sold none. highlights that “economic incentives drive further decentralization,” but that doesn’t always equate to BTC selling.

CoinShares data indicates that crypto inflows have been positive for over seven weeks, with the last week of September registering a record of $90 million in inflows. According to the same report, Bitcoin inflows amount to $68.7 million, reflecting the current market increase and perceived positivity.

What’s more, the U.S. Bank announced it will be launching a custody service for a fund manager which seeks to invest in “digital gold.” The service will aid investors in securing their private keys and assets for digital assets, including Bitcoin, Bitcoin Cash, and Litecoin, denoting that institutional interest is expected to increase as Bitcoin pushes on into a new bullish cycle.

Bitcoin’s credibility is a balance between group belief and government narratives. Bitcoin’s value has grown by 6.9 billion percent since it was first paired with the USD in 2009 and continues to generate financial headlines despite negative economic downturns. Crypto Twitter and Bitcoin maximalists have always been confident in Bitcoin’s status. Bitcoin itself gains more market exposure with each new financial epoch and wave of retail interest, even seeing integration as a legal, financial instrument in El Salvador

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