Bitcoin seems to have gained momentum after a horrible start of the week, and is heading back up. As of Thursday, Bitcoin has shot past the $60,000 mark, even breaking $62,000 before landing at $61,113 at time of writing—a big leap of 7.2% over the past 24 hours. So, what’s behind this latest surge? Let’s break it down.
Russia Allows Bitcoin Mining
One of the biggest pieces of news driving this rally is out of Russia. President Vladimir Putin just signed a bill that officially legalizes Bitcoin mining in the country. According to Ki Young Ju, CEO of CryptoQuant, “Russia seems to be acting to keep up with the US. Nation-level bitcoin FOMO (fear of missing out) is heating up.” This move by Russia is expected to give the Bitcoin network a solid boost. More miners mean a stronger, more resilient network, and that’s a win for everyone involved.
https://twitter.com/ki_young_ju/status/1821573268433711342
FTX and Alameda Payouts
In other news, a U.S. judge gave the green light for FTX and its sister trading firm Alameda Research to pay out $12.7 billion to creditors. There’s a lot of hope that some of this money will find its way back into the crypto markets as former users decide to reinvest in digital assets. If that happens, we could see even more momentum behind Bitcoin’s current upward trend.
Morgan Stanley Green Lights ETFs
And let’s not forget what happened just a day before all this. Morgan Stanley, the largest wealth manager in the U.S., decided to let its 15,000 financial advisers start recommending Bitcoin ETFs to their clients. This is huge because it signals a growing acceptance of Bitcoin in traditional finance circles, which could lead to even more investment in the space.
Still In a Bull Run
PlanB, the well-known Bitcoin analyst and creator of the Stock-to-Flow (S2F) model, recently said that he believes the bull market is still ongoing. Sticking to his model, a price of $140,000 is in the books this year.
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