Bitcoin Trades Above $24,000 Despite US Crackdown on Cryptocurrency

Bitcoin surged above the $24,000 mark amid a widespread rally in the cryptocurrency market. The flagship cryptocurrency surged 11.15% to trade at $24,905 on Thursday morning. This new rally is coming despite the recent clampdowns on cryptocurrency.

Investors King understands that the crypto market was on edge earlier this week following increased regulatory scrutiny from U.S. authorities on digital currencies.

Recall that on Monday, the New York State Department of Financial Services told Paxos to stop minting new Binance USD (BUSD) stablecoins. As a stablecoin, BUSD is pegged one-to-one to the U.S. dollar.

Paxos also confirmed that the Securities and Exchange Commission has notified the company that the agency could recommend an action that alleges BUSD is unregistered security. 

Responding to the new rally which started with Bitcoin, the majority of the altcoins were also in green as at the time of writing this report. 

Thereby,  the value of the entire cryptocurrency market rose more than $84.8 billion in the 24-hour time frame. 

Reacting to the development, Vice President of popular exchange wallet, Luno, Vijay Ayyar, stated that there are ” increasing signs that the market bottomed last November and has turned bullish,”

“We are gaining in momentum here and any bad news is being shrugged off, typical signs that the market believes the worst is over” he added. 

Meanwhile, Bitcoin (BTC) has rallied nearly 50% in the first seven weeks of the year, reaching a six-month high of $24,900, with outside forces like the sentiment in traditional markets largely supportive.

A number of crypto analysts expect a continued move higher that could see bitcoin more than double in value in the coming months.

Sharing his opinion, analyst at Goldman Sachs and Morgan Stanley, William Noble noted Bitcoin may move from consolidation to another parabolic move back to $56,000. 

Noble add correctly predicted bitcoin moving from $20,000 to $40,000 in 2022.