Crypto-related products continue to be in high demand. Photo: Reuters
Bitcoin’s price rose to over $ 50,000 (£ 36,851) on Wednesday as the cryptocurrencies offset losses incurred in the third quarter.
The rise follows Securities and Exchange Commission chairman Gary Gensler, who said the U.S. will not follow China’s example in banning digital tokens.
“Our approach is really very different,” reported Bloomberg Gensler.
Bitcoin (BTC-USD) rose 2% to trade at $ 50,680. However, Ethereum (ETH-USD) was down 0.7% and traded at $ 3,375.
Bitcoin was up on Wednesday morning. Chart: Yahoo Finance Germany
The Shiba Inu (SHIB-USD) meme token has skyrocketed since Elon Musk, CEO of Tesla (TSLA), tweeted a picture of his dog, which is the same breed that the token is named after. On Wednesday morning it was up 64%.
Meanwhile, Bitcoin is up nearly 76% in the past 12 months and is up about 17% this month.
It had previously fallen in part because China’s central bank promised to crack down on illegal cryptocurrency trading activities and banned foreign exchanges from offering services to mainland investors.
But Gensler’s comments will likely reassure investors – something that also happened when Federal Reserve Chairman Jerome Powell said the US had “no intention” of banning cryptocurrencies.
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“Powell’s statement sparked optimism among investors,” said Naeem Aslam, AvaTrade’s chief market analyst.
“Investors should expect the rally to continue as long as there is no major correction in the equity markets that could potentially spill over the crypto markets as well,” he said.
He added that investors should keep in mind that cryptocurrencies and crypto-related products continue to see strong demand.
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Most recently, the US bank entered the field and offers crypto custody services for Bitcoin. It is also evaluated whether it is possible for the bank to provide custody services for other digital coins in the future.
The story goes on
Meanwhile, the IOSCO group of securities regulators and the Bank for International Settlements, a global forum for central banks, have determined how rules for key clearing, settlement and payment services should also be applied to “systemic” or heavily used stablecoins.
This would mean that a stablecoin operator would need to set up a legal entity that explains how it is managed and manages risks such as cyberattacks.