Bitcoin Bounces Back From Lowest In More Than 1 Month
Bitcoin prices have recovered recently, climbing close to $9,000 after reaching their lowest in more than a month yesterday.
The world’s largest cryptocurrency by market value reached $8,702.47 earlier today, according to the CoinDesk Bitcoin Price Index (BPI).
The digital currency rose to this level after falling to as little as $7,335.57, a more-than five-week low, the day before, additional BPI figures show.
By generating these gains, Bitcoin climbed roughly 18.6% in less than 24 hours.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin pushed higher as the broader cryptocurrency market enjoyed gains.
At the time of report, every one of the top 100 digital currencies listed on CoinMarketCap were up over the last 24 hours.
When explaining Bitcoin’s recent rally, several analysts pointed to the recent regulatory developments and their impact on sentiment.
Mark Carney, chairman of the Financial Stability Board (FBS), published a letter on March 18 stating that crypto assets are not a threat to the global economy.
The letter, which was addressed to both finance ministers of G20 nations and heads of central banks, stated that:
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time.”
The document emphasized that the total market value of these digital assets represents a mere fraction of the global economy, stating that:
“Even at their recent peak, their combined global market value was less than 1% of global GDP.”
In the letter, Carney noted that while cryptocurrencies raise many questions, “the technologies underlying them have the potential to improve the efficiency and inclusiveness of both the financial system and the economy.”
Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, weighed in on this slant.
The FSB letter portrayed cryptocurrencies as “not a threat but something to nurture,” he stated, and this in turn fueled gains in the prices of these digital assets.
All Eyes On G20 Meeting
Going forward, the world will be watching the statements made by government officials during the G20 meeting, said analysts.
Oliver Isaacs, blockchain investor, advisor and influencer, weighed in on this situation.
“While the FSB’s statement may temporarily temper the otherwise increasingly hostile regulatory climate for cryptocurrencies, what transpires as world leaders meet at the G20 summit this week remains to be seen,” he stated.
Cryptos’ Growing Visibility
At any rate, the simple fact that these government officials are discussing digital currencies at the G20 event shows their growing visibility, according to cryptocurrency investor Marius Rupsys.
“I view this event very positively – crypto assets being discussed by largest countries shows it has reached important milestone to be considered big enough to be discussed on a global level,” he noted.