The premier cryptocurrency pushes above the $30,000 level despite the largest global crypto exchange, Binance, getting barred from UK regulators. This is another setback for crypto following the Chinese government crackdown against the digital currencies. Despite the crackdown, the broader world of cryptos climbed higher over the weekend with a bitcoin putting you back a shade under R500,000 per coin. – Justin Rowe-Roberts
(Bloomberg) – Bitcoin pushed higher as proponents took the UK’s crypto crackdown in stride after the digital token traded above a key technical level over the weekend.
The largest cryptocurrency advanced as much as 8% to $35,292 before trimming gains in New York trading. The broader crypto market also climbed, with the total valuation up about 5% to $1.44trn, according to CoinGecko pricing.
In one of the most significant moves to date by a regulator amid a global crackdown, Binance Markets, an affiliate of top global crypto exchange Binance, was banned Sunday by the UK financial watchdog from doing any regulated business in the country. Huobi, one of the most popular cryptocurrency platforms in China, said Monday that users in the country are prohibited from trading derivatives.
Crypto bulls often interpret tough regulatory action as a sign that the market is maturing. They also appeared to take further encouragement from Bitcoin’s failure to breach the closely watched $30,000 support level over the weekend.
“We’re seeing the $30,000 level on Bitcoin being defended quite well with a number of tests at that level over the past month,” said Vijay Ayyar, head of Asia-Pacific at crypto exchange Luno Pte. “We saw a lot of downward pressure on prices being defended, so this looks quite bullish at this point.”
Bitcoin has lost about half its value in recent weeks amid concern on its environmental impact and as regulators globally – notably in China – crack down on the industry. The digital currency reached a record near $65 000 in mid-April.
For Luno’s Ayyar, it is too soon to give the all-clear.
“One more push down to $30 000 might not hold given the number of times we’ve tested it and there’s only so much liquidity there,” he said. “Post-$30 000 and we should probably see $24 000 to $25 000.”