Bitcoin market rebounds and is back up above $8,000 after a tumultuous week that saw its value descend below the $6,000 mark for the first time since November last year.
This positive turn of events seems to bear a close correlation with the optimism expressed by US regulators at a recent Senate hearing.
As at press time, the coin is trading at $8,098 according to Coinmarketcap data. This marks an increment of more than 7% over the past 24 hours. Bitcoin had prior to this maintained a worrisome downward trend as clampdowns in several key markets seemed to spook investors.
Noteworthy Highlights of the Hearing
The US Senate committee on Banking, Housing and Urban Affairs held discussions on the approach that lawmakers should take with regards to regulating the digital currency space. The event saw bigwigs from the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) discuss what the future likely holds for cryptocurrency regulations in the US.
After a week of negative news reports and plunging prices in the industry, the positive tone of the hearing seems to have come as a pleasant surprise to market participants.
Both the SEC chairman, Jay Clayton, and CFTC Chairman Christopher Giancarlo expressed concern over the absence of regulatory frameworks around exchange platforms.
In this regard, Clayton was quoted as saying,
“I think our Main Street investors look at these virtual currency platforms and assume they are regulated in the same way that a stock is regulated and, as I said, it is far from that and I think we should address that.”
He added, “We may be back with our friends from Treasury and the Fed to ask for additional legislation.”
Senator Mark Warner who seemed quite familiar with the space pointed out that proper regulations on the space would require better coordinated efforts from the bodies involved. He expressed his optimism for the industry saying, “The potential writ large amongst crypto assets and the blockchain could be as transformational as the blockchain was years ago.”
Giancarlo expressed bullish sentiments concerning the crypto craze in his introductory statement saying, “We owe it to this generation to respect this generation’s interest in cryptocurrencies, and punish those who persecute.
He also made known his positive stance in Bitcoin and the technology as a whole, saying, “If there was no Bitcoin, there would be no DLT (Distributed Ledger Technology).” He added,
“I believe that “do no harm” is the right overarching approach for distributed ledger technology.”
Market Confidence Restored?
The focus of the meeting on protecting digital currency consumers seems to have reassured investors as the immediate market reaction was an upward surge.
Perianne Boring from the Chamber of Digital Commerce in Washington D.C. remarked, “We’re encouraged that the SEC and CFTC are working with others to address the patchwork of regulation that suppresses growth and consumer choice.”
Bitcoin seems to have pulled along with it most of the top 100 altcoins as almost all of them are once again in the green. The cumulative market capitalization of all cryptocurrencies is currently above $384 billion according to Coinmarketcap, quite a marked recovery from the Tuesday low of $276 billion.