Bitcoin Climbs Over $50,000, Recovers from Recent Lows
Bitcoin jumps to $50,000, underscores renewed buying momentum while SEC Chairman nominee to look into the regulation of the crypto market.
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- Bitcoin jumps to $50,000, underscores renewed buying momentum
- SEC Chairman nominee to look into the regulation of the crypto market
Investors’ enthusiasm made it possible for bitcoin to breach the $50,000 mark in a big step towards regaining the previous highs. On Wednesday, bitcoin went up to $52,000 in a 10% move to the upside. Although the digital asset has come off its highs and is now trading near the $50,000 levels, market participants remain optimistic that there is more to the rally which so far has produced over 70% return year-to-date.
On Feb 16, bitcoin broke the $50,000 barrier for the first time, fueled by a wave of institutional support as the blistering rally captivated investors worldwide. Soon after, on Feb 22, the price zeroed in on $60,000 for a single bitcoin, but the efforts fell short and the price retreated from an all-time high above $58,000 to lows near $42,000, a 25% move to the downside. The large-percentage drop is not uncommon in the crypto space and it could not affect buyers’ positive sentiment, which is strongly prevalent in the market so far this month. Month-to-date, the price of bitcoin has moved higher by 15%, even amid regulatory challenges and continued criticism over the asset’s future.
Earlier this week, Gary Gensler, nominee for Chairman of the US Securities and Exchange Commission, vowed to work for the regulation of crypto markets, which are often seen as a field for fraud and manipulation. President Biden’s SEC chair nominee promised to introduce “guidance and clarity” to the cryptocurrency space. “Bitcoin and other cryptocurrencies brought new thinking to payments but raised new issues of investor protection we still need to attend to,” Mr. Gensler said during his confirmation hearing before the Senate Banking Committee on Tuesday.
More Institutional Investors Join the Bitcoin Frenzy
“It’s important for the SEC to provide guidance and clarity,” nominee Gensler said, while he also confirmed he would promote the new technology and the rapidly evolving market if he is chosen to lead the SEC. “Sometimes that’s a clarity that will be a thumbs up, but even if it’s thumbs down, it’s important to provide that.”
The prices of crypto assets have been recovering this week. Across the board, the most popular digital coins are staging a comeback on the back of incoming big-name investors ready to jump in. The latest players to join the crypto wild rides are hedge fund manager Marc Lasry of Avenue Capital Group and Christopher Giancarlo, the former US Commodity Futures Trading Commission Chairman, who was referred to as “crypto dad” for his warm welcome of bitcoin futures during his days in the CFTC in 2017-2019. Both have invested in a crypto and blockchain investment company BlockTower Capital.
Proponents of the crypto rally say that the recent flow of institutional money into the digital space is a sign of strong and organic market growth and wide adoption, while sceptics claim the current surge is creating a bubble that will burst like the 2017 boom and bust cycle.