Bitcoin price makes a comeback, hitting eight-month high
The cryptocurrency hit an eight-month high as investors eagerly return to risky digital assets, while regulators and regulators lawmakers are considering tougher rules for the sector.
Bitcoin hit an eight-month high on Thursday as investors plunged back into risky digital assets, despite promises renewed pressures from regulators and lawmakers to rein in the cryptocurrency industry.
Bitcoin was trading near $25,000, a 10% gain from from the previous day, even as the stock market faltered. Investors on Wall Street seem increasingly confident that more interest rate hikes will be needed to rein in inflation, which has fueled market volatility over the past week.
But crypto investors appear to be operating in a different reality, the DealBook newsletter reports, and their optimism comes as signs of a regulatory crackdown mount in the wake of the exchange's collapse of FTX crypto in November.
On Wednesday, the Securities and Exchange Commission proposed a new "custody" rule that would, among other things, limit the ability of asset managers investing customers' money in crypto-assets. The proposal follows a series of recent moves by regulators to provide investors with additional protections in a market notorious for wild price swings.
A similar issue was front and center on Capitol Hill on Tuesday when the Senate Banking Committee held a hearing to discuss new safeguards for crypto investors, a possible first step toward legislation. “Now is the time to consider how to protect consumers from unregulated digital assets and ultimately who we want our financial system to serve,” said Sen. Sherrod Brown, Democrat of Ohio and President. of the committee.
On Monday, the New York Department of Financial Services ordered Paxos, a crypto company, to stop creating BUSD, a so-called stablecoin, due to "unresolved issues" regarding its relationship with crypto exchange Binance, which bore the coin's mark.
Last week, the S.E.C. crypto exchange Kraken of securities violations, arguing that its practice of “staking” — in which users pledge crypto holdings to companies in exchange for high returns — was akin to selling a contract of 'unregistered investment.
And pu is there is the shadow of FTX's spectacular implosion, which left investigators on a global hunt to recover billions in missing assets. Amid attempts to recover funds to reimburse FTX customers, attention has recently turned to $400 million that sits in an interest-bearing bank account. Some say it is a so-called short squeeze, in which those who bet against Bitcoin have to cover their positions by buying more. Another explanation is tax loss harvesting, in which investors sell at a loss at the end of the year to reduce their tax impact, then add back to their holdings when the calendar changes. A third potential factor: crypto investors appear to be selling off their holdings of so-called altcoins and investing that money in the relatively more...
The cryptocurrency hit an eight-month high as investors eagerly return to risky digital assets, while regulators and regulators lawmakers are considering tougher rules for the sector.
Bitcoin hit an eight-month high on Thursday as investors plunged back into risky digital assets, despite promises renewed pressures from regulators and lawmakers to rein in the cryptocurrency industry.
Bitcoin was trading near $25,000, a 10% gain from from the previous day, even as the stock market faltered. Investors on Wall Street seem increasingly confident that more interest rate hikes will be needed to rein in inflation, which has fueled market volatility over the past week.
But crypto investors appear to be operating in a different reality, the DealBook newsletter reports, and their optimism comes as signs of a regulatory crackdown mount in the wake of the exchange's collapse of FTX crypto in November.
On Wednesday, the Securities and Exchange Commission proposed a new "custody" rule that would, among other things, limit the ability of asset managers investing customers' money in crypto-assets. The proposal follows a series of recent moves by regulators to provide investors with additional protections in a market notorious for wild price swings.
A similar issue was front and center on Capitol Hill on Tuesday when the Senate Banking Committee held a hearing to discuss new safeguards for crypto investors, a possible first step toward legislation. “Now is the time to consider how to protect consumers from unregulated digital assets and ultimately who we want our financial system to serve,” said Sen. Sherrod Brown, Democrat of Ohio and President. of the committee.
On Monday, the New York Department of Financial Services ordered Paxos, a crypto company, to stop creating BUSD, a so-called stablecoin, due to "unresolved issues" regarding its relationship with crypto exchange Binance, which bore the coin's mark.
Last week, the S.E.C. crypto exchange Kraken of securities violations, arguing that its practice of “staking” — in which users pledge crypto holdings to companies in exchange for high returns — was akin to selling a contract of 'unregistered investment.
And pu is there is the shadow of FTX's spectacular implosion, which left investigators on a global hunt to recover billions in missing assets. Amid attempts to recover funds to reimburse FTX customers, attention has recently turned to $400 million that sits in an interest-bearing bank account. Some say it is a so-called short squeeze, in which those who bet against Bitcoin have to cover their positions by buying more. Another explanation is tax loss harvesting, in which investors sell at a loss at the end of the year to reduce their tax impact, then add back to their holdings when the calendar changes. A third potential factor: crypto investors appear to be selling off their holdings of so-called altcoins and investing that money in the relatively more...
What's Your Reaction?
