Bitcoin Price Skyrockets Following Japan’s Legalization as Payment Method

Bitcoin Takes a Leap: Thanks, Japan!

In a shocking twist of events (shocking for anyone who doesn’t refresh their Bitcoin app every five minutes, that is), Bitcoin’s price shot up past $1,130 across multiple exchanges earlier today. The driving force? Japan’s government decided to take Bitcoin out for a legal spin as a recognized method of payment. So what’s next, a Bitcoin parade?

The Journey to Legitimacy

On April 1st (no, this isn’t an elaborate prank), Japan’s Bitcoin legalization bill went live, igniting a surge of excitement in the crypto community. The bill, proposed back in December 2015, aimed to prevent another Mt. Gox disaster by putting in place solid regulations to protect users’ funds. Can we get a round of applause for some long-overdue regulation?

What Does ‘Legal Payment Method’ Mean?

The bill mandates that Bitcoin exchanges must now be approved by the Financial Services Agency (FSA), Japan’s top financial regulator. This means that exchanges can no longer just spring up overnight with the dubious ‘Trust us, we’re legit!’ tagline.

Bitcoin’s Price Surge Explained

Just moments after Japan officially recognized Bitcoin as legal tender, traders went wild—like kids in a candy store but with less sugar and more cryptocurrency. The impending exemption from the consumption tax on Bitcoin trading, set to kick in by July 2017, only added fuel to the fire. Let’s just say, traders weren’t ready to pass on that tax-free delight!

Global Impact of the Japanese Market

With Japan controlling a whopping 34.46% of the global Bitcoin market share, the recent price spike locally undoubtedly created ripples worldwide. The Japanese market handles over $120 million in daily trading volume—so let’s just say, they mean business.

Future Predictions: Up, Up, and Away!

As Bitcoin’s price bounced back, recovery from a week-long decline seems promising. With Segregated Witness (SegWit) activation on the horizon and near the crucial 95% activation threshold, analysts are buzzing about potential price increases in the mid-term. So get your popcorn ready, folks. We’re in for a wild ride!

Conclusion: What’s Next?

With regulatory approvals starting to unfold, Bitcoin might just be getting started on its journey to mainstream acceptance. And if Litecoin’s recent surge due to SegWit is any indication of trends to come, we might need to buckle up! Keep an eye on those wallets!