Hong Kong is preparing to legalize crypto for all its citizens by June this year.
Reacting to the news, the price of Bitcoin has surged by 12% to reclaim an eight-month high.
The rally signals that Bitcoin could have entered a new bullish cycle.
Hong Kong is preparing a robust crypto regulatory framework. The territory will officially make crypto buying, selling, and trading fully legal for all its citizens by June this year, sparking a major bull run for Bitcoin.
Hong Kong Opens Arms to Bitcoin
As most governments worldwide contemplate how to regulate cryptocurrencies, Hong Kong, the Special Administrative Region of China, has decided to become the crypto hub of the Asian Continent.
In actualizing this plan, Hong Kong will officially legalize crypto buying, selling, and trading for all its citizens by June of this year. The city is already developing a robust regulatory framework, which could see it take the lead in crypto adoption.
Singapore’s largest bank, DBS, has already moved to apply for a digital asset license to offer crypto trading in HK. In addition, there are reports that there could be a stablecoin based on an Asian currency launched in the region. Crypto sleuth @NoodleofBinance tweets:
On June 1st, 2023, Hong Kong will officially make crypto purchase & sell, trading, fully legal for all of its citizensExpect a huge influx of big money from the EastAsian currency based stablecoin coming out of HK will be a certainty as well
— Crypto熊猫 (@NoodleofBinance) February 15, 2023
Bitcoin (BTC) Climbs to 8-Month High
The incredibly bullish reports quickly nullified the recent market downtrend sparked by the United State’s SEC crackdown on leading crypto firms, including Kraken. The market rally is led by Bitcoin, the world’s largest crypto.
Over the last 24 hours, the price of Bitcoin (BTC) has shut up by more than 12%, taking Bitcoin’s year-to-date gains to 48.5%
The 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap
The rally has seen the price of BTC jump as high as $24,769 for the first time in eight months – during the aftermath of the Terra ecosystem collapse. The broader crypto market is on a +8.27% rise in the last 24 hours, with the global market cap now above $1.11 trillion.
Are We in the Bullish Cycle Yet?
While Bitcoin has been on a rally since the start of 2023, it hasn’t stopped crypto market analysts from debating whether or not Bitcoin (BTC) has officially entered a new bullish cycle.
With Bitcoin forming a new higher high (HH) as it spikes above $24,700, backed by the recent golden cross, the more optimistic analysts are basking in the euphoria of Bitcoin entering a bullish cycle.
Poking fun at “il Capo Of Crypto,” the analyst and trader who recently called the rally the biggest bull trap he had ever seen, Duo Nine tweeted:
Yoooo #Bitcoin wait for me bro! For those that can't read charts - #BTC just made a HIGHER HIGH. This bear market is so OVER. Did you hear that Capo? O . V . E . R . There is nothing you can do about it. Bow to the king and respect its alpha. pic.twitter.com/22BJVAP01j
— Duo Nine discord.gg/ycc (@DU09BTC) February 15, 2023
Holding above this level will guarantee that the price of Bitcoin has indeed broken out of the previous bearish cycle. The rally also coincides with the growing trend of Orindals (Bitcoin NFTs), which has surprised the market.
On the Flipside
Despite opening its doors to crypto, the Hong Kong Monetary Authority (HKMA) has said it would not tolerate the use of algorithmic stablecoins like the TerraUSD, which imploded last year.
Why You Should Care
There is genuine excitement about the legalization of crypto in Hong Kong as it would see a massive inflow of cash from the Chinese economy into the crypto industry.
Read about Ordinals of Bitcoin in: Gamma Launches No-Code Creator Platform for Bitcoin NFTs
Find more info on Bitcoin’s market direction below: Bitcoin: What to Expect in the Short and Long Term
