South Korea lifts limits on corporate crypto investments

[Ben Graham]

Bitcoin rose toward $92,500 today after positive news that South Korea will lift a ban, in force since 2017, that has barred companies from investing in cryptocurrencies.

Under the new rules, corporations will be allowed to invest up to 5% of their capital in BTC, ETH, and other major assets. Regulators expect that the arrival of corporate money will make the market more mature and oriented toward long?term investment.

The move by the South Korean regulator is a significant signal for the global crypto industry. It demonstrates a willingness among major economic players to adapt to new financial realities and to recognize the potential of digital assets. It is expected that similar decisions may follow in other countries seeking to attract investment and to secure leading positions in blockchain technology development, notably China.

However, it should be remembered that the influx of corporate capital also brings new risks. Greater institutional influence may increase market volatility because large players can move prices materially. In addition, corporate investors are generally more sensitive to regulation and macroeconomic factors, which could lead to sharper swings in crypto prices.

Nevertheless, over the long term, the arrival of corporate money will likely have a positive effect on the development of the crypto market. Higher liquidity, improved transparency, and the adoption of new technologies will all help strengthen the position of cryptocurrencies within the global financial system.

Trading recommendations:

Regarding the technical picture for Bitcoin, buyers are currently targeting a return to $93,250, which would open a direct path to $95,000 and then to $97,300. The farther objective is the peak near $99,400. A breakout of that level would signal attempts to restore a bullish market. In the event of a decline, buyers are expected around $91,300. A drop below that area could quickly push BTC toward $89,600, with a further target near $87,400.

Regarding the technical picture for Ethereum, clear consolidation above $3,154 would open a direct path to $3,229. The farther objective is the peak near $3,297. Surpassing that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $3,072. A return below that area could quickly send ETH down to approximately $2,997, with a farther target near $2,887.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.

The material has been provided by InstaForex Company - www.instaforex.com