Bitcoin surged 5%, as high as $28,475
Bitcoin hiked as investors shrugged off the ongoing threats posed by US regulators against the industry giants and were willing to take on the expected risk.
The world’s largest cryptocurrency advanced 5% to $28,475 in the last 24 hours. After retreating on Monday, Bitcoin regained the $28,000 mark with US commodity futures following an FTC complaint against Binance.
Ether, the second-ranked digital coin, advanced nearly 5.8% to $1,816.12.
Bitcoin has steadily climbed this year after a difficult 2022 that destroyed major crypto exchanges and sharp price pullbacks. Investors have benefited somewhat from changes in the US Federal Reserve’s interest rate hikes, which affect risk assets such as stocks.
The reason for such a change on Wednesday is unknown. However, this comes amid a broad advance in US stocks. Bitcoin is known to be viewed by investors as a more traditional risk asset.
At the close, Nasdaq futures were up 100 points, or 0.92%.
US regulators target crypto firms amidst volatility
US regulators have taken action against crypto firms due to the heightened volatility in the market, filing a lawsuit against Binance and co-founder Changpeng Zhao for providing unauthorised trading services to US clients.
The Securities Commission has also threatened to take legal action against Coinbase because there was an alleged violation of securities rules.
The CFTC case against Binance hasn’t had much of an impact on market data.
Bitcoin has previously received a boost from instability in the global banking system.
US technology-focused lender Silicon Valley Bank and crypto-focused banks Silvergate and Signature proved unprofitable.
The Federal Reserve sought to cushion the blow of the banking crisis with a Bank Term Funding Program, which seeks to help banks meet their obligations to depositors.
The vision for Bitcoin’s proponents is that it can be a store of value in times of economic hardship and a form of money that people can access without a bank account.
It is volatile and has been known to rise or fall by 10% in hours.
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