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Bitcoin [BTC] hits $24000 in Iran after government recognizes cryptocurrency mining as an industry

Anirudh VK

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Bitcoin [BTC] hits $24000 in Iran after government recognizes cryptocurrency mining as an industry
Source: Unsplash

Iran has recently announced that they will begin to treat cryptocurrency mining as an industry. This comes after increased pressure on the country enforced by changing economic sanctions imposed by the United States. Amidst this bullish news, the price of Bitcoin [BTC] was reportedly around $24000 [converted] on some Iranian exchanges.

Price of BTC on EXIR exchange | Source: EXIR

Price of BTC on EXIR exchange | Source: EXIR

The exchange platform Exir reported a price of 1,020,000,000 IRR for 1 Bitcoin, bringing the value of the coin above its previous all-time high of $20000. The current price of the cryptocurrency is around $7300. The price of Ethereum was also inflated to be around $900, compared to its current price of $280.

The Iranian foreign exchange and monetary policy regulator, the Central Bank of Iran, is all set to draft a framework of policies for the newly created industry of cryptocurrency mining. According to Iran’s Supreme Council of Cyberspace’s Secretary, Abolhassan Firouzabadi, the policy is set to be drafted in the next 18 days.

He said in a statement to IBENA that launching a national cryptocurrency is promising. He also stated that it showed promise in being used as a financial transaction instrument with Iran’s trade partners and friend countries. This is due to the rising economic pressures through U.S. sanctions.

He also added that the mining of cryptocurrencies has been accepted as an industry by many governmental and related authorities. The list includes the Ministry of Communications and Information Technology, Central Bank, Ministry of Industry, Mining and Trade, Ministry of Energy and the Ministry of Economic Affairs and Finance.

The weakening of the Iranian Rial against the US Dollar is a point of contention for many, as economic sanctions by Donald Trump have driven European markets to withdraw from Iran. The President sent a clear message when the sanctions were passed earlier this year in August, thus forcing many companies to choose between Iran and the United States as target matters.



This is driving the rial to the brink of hyperinflation, as the value has been in a continued downward trend since the announcement of the revised sanctions. Just the announcement of the sanctions drove over 100 companies to withdraw and stop their operations in the country, with growing political unrest visible through riots and protests.

This represents another country that has turned to Bitcoin in the times of political and economic instability. This pattern was also seen with Venezuela and its hyperinflated fiat being swapped out in use by Bitcoin and other cryptocurrencies such as Dash [DASH].





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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