Welcome to this week's edition of Overbit News.
This week's edition kicks off with the head of Turkey's central bank ruling out a total ban of cryptocurrencies and saying a wide range of crypto regulations is coming within two weeks, according to Trade Moneta. Speaking on state-run channel TRT, Governor Şahap Kavacıoğlu said, "You cannot fix anything by banning crypto, and we do not intend to do this."
Kavacolu's remarks come less than a week before a proposed ban on the use of cryptocurrencies for payment goes into effect. The announcement of the ban, which came as the usage of cryptocurrencies in the country increased due to the falling lira, attracted protests from the government's political opponents.
The remarks also came shortly after the government arrested employees of two cryptocurrency exchanges under investigation. Without elaborating on the upcoming regulations, Kavacolu said that the bank would explain the legal meaning of cryptocurrencies and govern how institutions should store them, according to Trade Moneta.
According to the paper, the central bank chief stated that the regulations are necessary to address the "alarming" number of funds leaving the country via cryptocurrency. The news that the government would soon prohibit the use of cryptocurrency for payment sparked a sell-off in the price of bitcoin (BTC, +5.93 per cent), partially due to fears that other countries would follow Turkey's lead. Following the lira's depreciation, internet searches for "bitcoin" in Turkey have skyrocketed.
Our final piece of news of the week is a win for bitcoin bulls as "Bitcoin Breaks 5-Day Losing Streak, Climbs Above $52K".
The leading cryptocurrency's price was about $52,150, with hourly buyer volume at its highest since April 23. Bitcoin reached $52,000 for the first time in six days on Monday, as bulls pushed prices higher during early Asia trading hours. Bitcoin (BTC) rebounded from a seven-week low near $47,655, then posted some of its most significant hourly gains in two days in a rally that appeared to start about on Sunday.
The cryptocurrency was trading about $52,100 Monday, with buyer volume at its highest hourly levels since April 23. Traders are debating whether or not Bitcoin is correcting. Since February last week, prices fell by the most, as investors worried that US President Joe Biden's plan to lift the capital-gains tax on cryptocurrencies and other assets would put a damper on the market. On the technical front, Bitcoin's relative strength index (RSI) – a metric used to gauge trend momentum – indicates that the cryptocurrency is attempting a regular timeframe bounce from oversold levels at 30.00 on April 25.
And just like that, last week's bearish momentum seems to be fading off the back of Bitcoin's upward price action as well as the regulatory news out of Turkey, serving as a great example of the quick swings that are so prevalent in markets and especially the cryptocurrency industry. Here at Overbit.com, we'll always do our best to keep you updated in these constantly changing times. Thanks as always for reading Overbit News.