Cryptocurrency prices have seen a collective surge after a period of sharp volatility, with Bitcoin once again rising to levels close to $100,000. This surge came amid expectations of a change in regulations governing cryptocurrencies in Japan.
Japan moves on cryptocurrency regulation
The Financial Supervisory Authority in Japan has begun holding closed sessions to review regulations related to cryptocurrencies. Discussions are revolving around the possibility of classifying cryptocurrencies as securities. Informed sources indicated that the Japanese Financial Services Agency is considering amending the laws, allowing cryptocurrencies to be traded as financial products similar to securities.
The agency is expected to reveal its policy directions in June, with preparations to consult with the Financial System Council in the fall. If the amendments are approved, a draft law amendment will be submitted by 2026.
Bitcoin recovers, Cardano records a significant rise
During today’s trading, Bitcoin saw a 1.18% rise to trade at $98,085. This rise came after a sharp decline, as the days witnessed The past has seen investors turn away from riskier assets. This recovery is a pivotal point in the currency’s recovery of its positive performance.
At the same time, Cardano has seen a significant increase of 11.02%, trading at $0.7631. Despite this significant growth, Cardano remains far from its all-time high of $3.10 in September 2021, having fallen 76% from that price.
New Opportunities for Altcoin ETFs
It is expected that altcoin ETFs such as Litecoin and Solana may be approved in the near future. This news raises optimism about the approval of more cryptocurrency ETFs in the coming months, which will further boost the cryptocurrency market’s growth prospects.
Market Cap of Major Cryptocurrencies Increases
The market cap of the largest cryptocurrency, Bitcoin, has risen to $1.93 trillion. Its trading volume has also increased over the past 24 hours to $36.23 billion.
But on a weekly basis, Bitcoin has lost about 2.96% of its value. This is due to the volatility witnessed by financial markets as a result of investors’ concerns about trade crises, especially the trade war resulting from the tariffs imposed by US President Donald Trump.
Rise in the prices of other cryptocurrencies
The rise in the prices of other cryptocurrencies reflects a general improvement in the market. Binance Coin, for example, rose by 5.83%, reaching a price of $641. This increase shows an improvement in demand for digital assets in general, apart from Bitcoin.
On the other hand, Cardano saw a significant jump, rising by 11.02%, to trade at $0.7631. Despite this rise, Cardano remains far from its all-time highs. Where it had recorded a price of $ 3.10 in September 2021.
The impact of this rise on altcoins is clear. Interest in altcoins as a new investment tool is growing. Moreover, experts point out that the increased demand for these currencies reflects the diversification of investors’ portfolios. Many investors are looking for new opportunities after Bitcoin became a high-value currency.
Market expectations indicate that altcoins such as Litecoin and Solana will witness further increases. If this trend continues, we may witness more interest in investing in altcoins.
As for other cryptocurrency prices, Ethereum witnessed a 2.55% increase to reach $ 2,692. Binance Coin also rose by 5.83% to reach $ 641. Ripple rose by about 3.46% to reach $ 2.4709, while Dogecoin increased by 3.47% to reach $ 0.261494.
The impact of global crises on digital currency prices
Global crises have a significant impact on financial markets, including cryptocurrencies. Although cryptocurrencies are considered assets that are separate from the traditional financial system, they are not immune to the effects of economic and political crises. These effects increase during times of major disruption in the global economy, such as trade wars or financial crises.
During global crises, the demand for cryptocurrencies is affected by an increase or decrease in economic concerns. For example, in periods of instability, some investors turn to cryptocurrencies as a safe haven away from the volatility of traditional markets. On the other hand, others stay away from them due to fears of sharp price fluctuations.
The decisions of governments and central banks also play an important role in influencing cryptocurrency prices. When tight monetary measures are taken or new taxes are imposed, prices may decline. On the other hand, when stock markets experience severe volatility or collapse, demand for cryptocurrencies may increase as a more stable alternative.
Expectations indicate that cryptocurrencies will continue to be affected by global crises. Investment opportunities in them will increase if levels of concern about traditional currencies increase. In addition, governments may expand regulation of this sector to increase control over it. This may help enhance the stability of digital currencies in the future. Digital currencies will remain vulnerable to crises, but they will remain an important means of investment in difficult economic conditions.
Digital currencies have witnessed a significant recovery in the recent period, as Bitcoin and other assets such as Cardano and Litecoin recorded a significant rise in prices. At same time, some countries such as Japan are seeking to regulate this sector, reflecting the growing interest in digital currencies. Despite the ongoing fluctuations, future expectations indicate that these currencies will remain strongly present in global financial markets.
Future expectations for Bitcoin and digital investment funds
Bitcoin has witnessed a strong increase in its value, approaching $47,000 for the first time since April 2022. This rise is linked to expectations about the US Securities and Exchange Commission’s approval of the issuance of digital asset-linked exchange-traded funds for the first time in history. Analysts expect these funds to be approved during the current week. Several companies, including the world’s largest asset manager BlackRock and Ark, have submitted revised models for these funds. If approved, these applications would mark the final step towards the launch of the long-awaited investment products in this sector.
