Bitcoin bounced back from its roller coaster weekend, with prices on the way to their biggest win in more than three months. The cryptocurrency traded 12 percent at $ 37,655 in New York at 10:58 a.m. It climbed all the way to $ 38,683. Digital currencies have been hit by volatility for the past two weeks, with Bitcoin prices plummeting 18 percent on Sunday.
Traders may feel more positive as the crypto industry holds one of its largest conferences of the year. Federal Reserve Governor Lael Brainard noted at the consensus conference that a big topic for central banks when it comes to a digital currency is its impact on the financial system. If people can keep digital dollars in a wallet that has nothing to do with a bank account and can easily use that wallet for payments and transfers, it will undermine the commercial banking system, Brainard said. It could starve banks over deposits, which are of course essential to lending, she noted.
Bridgewater’s Ray Dalio said there is little incentive right now to keep dollars down without paying interest. At some point, people will go to “just about anything” – stocks, gold, bitcoin, and real estate, he said. “Love or hate it, Bitcoin is affecting the markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a statement on Sunday. “What is Bitcoin – a currency? A 1-on-1 manifestation of Elon Musk’s thoughts? A “factor” of meme + speculation + angry Gen Z? Like a tween Justin Bieber, you don’t yet know what Bitcoin will be – but you have a feeling that it will be big. “
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