Bitcoin Has Surged 80% In 1 Month; But Is The Move Exhausted?

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Summary

Legalization in Japan has created a flood of interest into the cryptocurrency.

In light of the legitimization of Bitcoin through the legislation, asset managers are stepping in to the market.

Latest price move surging above $1,600.00 shows exhaustion in the market as the market turned right back around; profit takers are stepping out.

In April, the Japanese government enacted legislation that made Bitcoin a legal form of payment, a development I have been following. This legitimization has created a massive surge over the past month; Bitcoin (BTCUSD) has pushed from $900.00 a coin to topping over $1,600.00 during that time. This legalization has drawn in real money as asset managers start to pour into the market. The limited supply of Bitcoin means that the price will continue to move higher as more and more players enter the market. It is getting that no sooner than you look at a chart the cryptocurrency prints another new, all-time high.

Currently, in Japan, there are 10 new exchanges that are being planned to come online. The surge in interest, as well as the new regulated environment in Japan, will mean that trading in coins will be relatively more safe. There are two factors contributing to this. First, in order for the Japanese exchange platforms to come online, they must first get licensed by the government. This licensing process will, in effect, remove any questionable business practices. This is what is drawing considerable interest in the cryptocurrency.

The other factor is that when the Japanese government passed the legislation legalizing Bitcoin, it also made trading and investing in Bitcoin exempt from taxation. This removed another barrier keeping individuals out of trading the currency.

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