- A rally seen on Bitcoin (BTCUSD on xStation5) encouraged investors to pour their money into Ethereum (ETHUSD) and Litecoin (LTCUSD)
- Russian regulators confirm that cryptocurrencies will be officially regulated in the country
- PBoC could consider launching its own centralized state cryptocurrency
A Bitcoin’s rally has continued over the course of the recent hours as the price has marked a new all-time high a touch above astounding $5800 meaning that Bitcoin has been priced 4.5 times above gold prices. Bullish expectations have already turned into other digital currencies where Ethereum and Litecoin are among top beneficiaries. Let’s illustrate a technical overview of them.
The Ethereum price has been able to break through $310 of late pushing the virtual currency to the highest level since 8 September. Notice that Ethereum stayed above an ascending trend line which could have been an indirect cause why the price soared afterwards. As for now, it seems that we could keep on increasing as there is no a harder obstacle before bulls till $390. Nonetheless, one needs to remember that a continued uptrend may be contingent on developments on Bitcoin as all digital currencies appear to be well correlated to one another.
Moving on, Litecoin has already benefited from a stellar performance seen on Bitcoin as the price has breached its local resistance quite easily. On the surface, Litecoin seems to be a bit lesser room to continue rising in the nearest future as buyers can run into the first resistance in the vicinity of $63. Once bulls are able to deal with this line they could open up themselves massive space for much more substantial swings higher.
Furthermore, an interesting story came from Russia which is a continuation of a thread we mentioned earlier this week. After the meeting with the Russian President Vladimir Putin, Russia’s regulators announced that cryptocurrencies would officially be regulated in the country. The central bank and the finance ministry will now work together to come up with one draft law to provide a basic regulatory framework for cryptocurrencies including Bitcoin, which is expected by the year’s end. One may conclude that this ends a would-be dispute between the central bank and the finance minister which have been at odds with the future of virtual currencies in the former soviet economy.
At last, China may be another mover for Bitcoin as some curious reports have emerged recently. The country is allegedly seeking a possibility to launch its own state-issued digital currency as a way to stabilize domestic fiat currency and secure the country’s financial status. Notice that the vision has been sketched out by Yao Qian who governs the Digital Currency Research Institute focuses on R&D related to blockchain-based digital currency. The institute was launched by the Chinese central bank in June this year.