The largest digital coin rallied around $ 35,000 on Monday after teetering to around $ 30,000 over the weekend.
Bitcoin pushed higher as supporters took the measure of the UK’s crypto crackdown in the aftermath after the digital token traded above a key technical level over the weekend.
The largest cryptocurrency rose as much as 8% and recently traded at around $ 34,580 in New York City. The broader crypto market also climbed, with a total valuation up about 5% to $ 1.44 trillion, according to pricing from CoinGecko.
In one of the most significant steps taken to date by a regulator amid a global crackdown, Binance Markets Ltd., a subsidiary of the world’s leading cryptocurrency exchange Binance, was banned on Sunday by the regulatory body. UK financial supervision to do any regulated activity in the country. Huobi, one of the most popular cryptocurrency platforms in China, said on Monday that users in the country were banned from trading derivatives.
Crypto bulls often interpret strict regulatory measures as a sign that the market is maturing. They also appeared to be further encouraged by Bitcoin’s failure to break through the closely watched support level of $ 30,000 over the weekend.
“We see the $ 30,000 level on Bitcoin being pretty well defended with a number of tests at this level over the past month,” said Vijay Ayyar, Asia-Pacific manager at the crypto exchange Luno. Pte. “We’ve seen a lot of downward pressure on the forbidden prices, so it looks pretty bullish at this point.”
Bitcoin has lost about half of its value in recent weeks amid concern over its environmental impact and as regulators around the world – especially in China – crack down on the industry. Digital currency hit a record high of nearly $ 65,000 in mid-April.
For Luno’s Ayyar, it is too early to give the green light.
“Another drop to $ 30,000 might not account for how many times we’ve tested it and there isn’t a lot of cash there,” he said. “After $ 30,000 and we should probably see $ 24,000 to $ 25,000.”