Bitcoin (BTC) rose to a new all-time high of over $28,300 on Wednesday, defying the bearish sentiment that has gripped the crypto market amid the legal troubles of Binance, the world's largest cryptocurrency exchange. 🙌
The price of bitcoin surged by more than 10% in the past 24 hours, reaching as high as $28,387 at 11:30 UTC, according to CoinDesk 20 data. The rally came despite the news that Binance is facing regulatory scrutiny in several countries, including the U.S., the U.K., Japan, and Germany. 😮
Binance has been accused of operating without proper licenses, facilitating money laundering, and offering derivatives products to retail investors without adequate disclosures. The exchange has denied any wrongdoing and said it is cooperating with regulators. 🙅♂️
Some analysts said that the bitcoin rally shows that investors are not deterred by the Binance saga, and that the demand for the leading cryptocurrency remains strong across the globe. 🌎
“The Binance news has not had a material impact on bitcoin's price. This suggests that the market is becoming more mature and resilient to external shocks,” said Jason Lau, chief operating officer at San Francisco-based crypto exchange OKCoin. 👏
Lau added that bitcoin's fundamentals are also improving, as more institutional investors and corporations are adopting the digital asset as a store of value and a hedge against inflation. 💰
“Bitcoin is breaking new highs because it is breaking new highs. It is a positive feedback loop that attracts more attention and capital into the space,” he said. 😍
Other crypto experts said that bitcoin's rally is also driven by its limited supply and growing demand from retail investors, especially in Asia, where many countries are facing economic challenges and currency devaluation. 📈
“Bitcoin is becoming a safe haven asset for many people in Asia who are facing political instability, social unrest, and currency depreciation,” said Bobby Ong, co-founder and chief operating officer of CoinGecko, a crypto data provider. “Bitcoin is seen as a way to preserve their wealth and hedge against inflation.” 🛡️
Ong also noted that bitcoin's dominance, or its share of the total crypto market capitalization, has increased to over 70%, indicating that investors are favoring bitcoin over other cryptocurrencies. 🥇
“Bitcoin is still the king of crypto, and it is leading the market higher. Other cryptocurrencies are lagging behind and struggling to catch up,” he said. 🏆
Source: First Mover Asia: Bitcoin Rises Over $28.3K Despite Binance Legal Woes