Bitcoin Surpassed $50,000 and Crypto Regulations
Bitcoin gained popularity a long time ago. However, it remains one of the most recognizable cryptocurrencies in the world. It is worth mentioning that, Bitcoin held gains above $50,000 in Asia trading on Thursday. As a result, the largest cryptocurrency is back on track after suffering losses last week with bullish momentum returning once again on more mainstream interest.
Interestingly, it rose as much as 1.7% and was trading at about $50,976 as of 11:14 am in Hong Kong on Thursday. The largest cryptocurrency surged as much as 11% during the U.S. trading on Wednesday.
As a reminder, the cryptocurrency has been volatile with prices dropping 21% last week before recovering with the earlier broad bounce back in global equities. Importantly, on a technical basis, the GTI Global Strength Indicator begun to curl upward, suggesting a bullish move for Bitcoin. As a reminder, the GTI Global Strength Indicator detects trend fluctuations.
It is up 13% this week.
People should keep in mind that, countries are trying to solve the problems created by the coronavirus pandemic. Recently, Congress passed a stimulus package. Interestingly, this is very good for scarce assets such as Bitcoin.
Bitcoin and famous investors
It is worth noting that, more famous investors are backing crypto. For example, billionaire hedge-fund manager Marc Lasry as well as the former U.S. Commodity Futures Trading Commission Chairman Giancarlo invested in crypto-asset and blockchain investment firm BlockTower Capital.
Moreover, Bitcoin and other cryptocurrencies are driving growing interest from mainstream investors in Canada. As a reminder, the introduction of Bitcoin exchange-traded funds helped drive $5.2 billion in inflows in February. It is the second-highest month of such flows on record.
Interestingly, these investments underline a growing trend of institutional money flowing into the digital space, which is simultaneously gaining attention from regulators as the nascent industry seeks to carve out a place in mainstream finance. As a reminder, the outlook for the cryptocurrency industry is still under fierce debate. Proponents like to mention growing institutional adoption. However, critics say Bitcoin is a giant bubble destined to burst like its 2017 boom and bust cycle.
Hopefully, Gary Gensler understands the importance of crypto markets. Interestingly, the nominee for chairman of the U.S. Securities and Exchange Commission stated that making sure crypto markets are free of fraud and manipulation is a challenge for the agency. Authorities should work with experts as well as companies to find the best solution in the nearest future.
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