Bitcoin markets are continuing their rebound after strong demand from South Korea, as the latest sustained price rally continues.
Today’s recovery has seen prices breaching $11,600, following demand on Korean exchanges responsible for a price of as much as $12,300, as investors continue to make up for lost ground in the value of bitcoin.
After bitcoin’s strong close over the final months of 2017, a collapse in value following a stream of negative press had sent prices tumbling from their December all-time highs.
However, the market now appears to have gone through a consolidation phase, and has rebounded to similar levels as the start of December, when bitcoin crossed $12,000 for the first time.
In recent days, more positive indications from regulators across the globe have eased the nerves of bitcoin investors, and restored the generally bullish sentiment that has driven unprecedented market growth over the last year.
Regulators have been developing their positions, with statements emerging from various authorities across the world that provide reassurance to the markets.
In particular, suggestions from the South Korean authorities about their approach to bitcoin regulation have calmed those who were concerned about changes in regulation there, including investors in the domestic market who now appear amongst some of the most bullish.
One of bitcoin’s most important markets, the news from South Korea will be weighing heavily in favour of today’s ongoing price recovery. With the Financial Supervisory Service confirming that the government would continue to support ‘normal’ transactions in cryptocurrency, it seems that some of the worst fears over the South Korean situation are now less likely to come to pass.
The rise in bitcoin prices is also having a knock-on impact on other cryptocurrencies, which have seen their market capitalisation nearly double from lows of just two weeks ago, now standing at a total of $510 billion.
The news will be welcomed by bitcoin investors and stakeholders, including businesses with a commercial interest in a strong bitcoin price, like cryptocurrency miners. It remains to be seen whether the strong momentum can continue in the weeks ahead, and whether bitcoin will continue to gallop back towards its December highs.