Bitcoin (BTC), the largest cryptocurrency by market capitalization and price had just hit a new all-time high—reaching $60,000 for the first time since its creation, according to data from CoinTelegraph Markets and Tradingview?
The digital currency suffered a severe correction in late February. BTC stabilized at 58,000 resistance zone before plummeting to $45,000. However, after a bullish momentum led by Bitcoin traders—the largest crypto hit a new milestone on Saturday morning.
CoinTelegraph research team said: “Realized Cap HODL waves show what percentage of realized capitalization belongs to HODLers of different type (1y-3y hodlers, 3y-5y and so on). Usually, macro tops occur when the market over-saturates with FOMO. This can be identified when a large % of realized capitalization belongs to short term hodlers (younger than 6 months). The last macro tops were accompanied by more than 95% of realized cap belonging hodlers of less than 6 months. Currently, we are at 82%.”
Regulators’ fear grows of Bitcoin & Altcoins
Bitcoin gained remarkable interest in the last year amid the Covid-19 pandemic. Some traders described the digital currency as “digital gold” and argued that it can be a hedge against inflation. Meanwhile, major financial institutions endorsed BTC and other cryptocurrencies, pushing BTC and Altcoins to their highest level since their creation.
For instance, Elon Musk’s Tesla (NASDAQ: TSLA) invested $1.5 billion in Bitcoin. Additionally, both Bank of New York and MasterCard announced they’ll be accepting the digital currency. On the other hand, MicroStrategy lifted its debt offering to over 1$ billion to invest it in Bitcoin. In return, the institutional interest in Bitcoin and Altcoins resulted in an even higher volatility in the cryptocurrencies market.
However, with the growing interest in cryptocurrencies, the fear from crypto schemes and highly volatile cryptocurrencies markets raised an alarm for watchdogs and regulators.
Last month U.S. Treasury Secretary Janet Yellen warned about investing in the crypto. Growing concerns regarding using Bitcoin for illegal purposes and money laundering fueled discussions of the future of Bitcoin. In conjunction with Yellen’s comments, New York Attorney General Letitia James said that the Bitcoin community should play by the rules or we will shut you down.