Bitcoin Above $24K As Crypto Markets Recover From Regulatory Assault
After a week of decline caused by a slew of enforcement actions against major players in the industry, Bitcoin renewed its 2023 rally and rose above $24,000 by Wednesday afternoon. The day also saw multiple other major digital currencies, as well as crypto-related stocks, rise significantly.
Crypto Markets Make a Comeback After Several Days of Regulator-Casued Turmoil
After several days of losses and stagnation, the cryptocurrency market started rising again on Wednesday, February 15th. While the rise was seen across the board, perhaps the most notable action was seen with Bitcoin which rose above $24,000 for the first time in half a year, and Silvergate which closed 28% in the green.
Multiple other digital assets rose significantly throughout the day. The world’s second-largest cryptocurrency, ETH, traded for around $1,665—near its 2023 high. Binance’s BNB, which suffered a sharp drop on Monday after the exchange-affiliated stablecoin BUSD came under regulatory scrutiny, also climbed more than 5% to above $311.
Several cryptocurrency-related stocks also ended the trading day significantly in the green. The cryptocurrency exchange Coinbase, which went into a decline after SEC’s settlement with Kraken was revealed last week, was up nearly 20% by the end of the day. MicroStrategy, well-known for its bullish stance on Bitcoin, also ended the regulator-prompted decline and closed 10% in the green.
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The Dynamic Start of 2023
While only a month and a half old, 2023 has already seen a lot of turmoil when it comes to digital assets. On the one hand, last month saw a rally that finally ended the downward spiral that permeated 2022 and became one of Bitcoin’s best Januarys in a decade. On the other, there have been multiple bankruptcies, disruptions, and regulatory actions shaking the industry.
The year started with Sam Bankman-Fried’s first court hearing with regard to the collapse of his exchange. and with the start of a feud between Gemini’s Winklevoss twins, and DCG’s Barry Silbert—itself started due to the effects of the FTX contagion. The public disagreement ultimately led to an agreement and to a bankruptcy filing by DCG’s Genesis Global.
The first half of February also saw a renewed regulatory offensive with the SEC taking aim at both crypto staking, and stablecoins. Furthermore, the New York State Department of Financial Services (NYDFS) also joined the fray when it ordered Paxos to stop minting its Binance-branded stablecoin.
Despite last year’s “crypto winter” and the dramatic events seen so far this year, major companies from outside the industry have continued showing a keen interest in digital assets. Companies like Walmart and Amazon reportedly have great plans pertaining to NFTs and web3 in general. Furthermore, non-fungible tokens appear set to take their place in art history with more and more donations made to museums worldwide and even an NFT-focused exhibition ongoing in New York’s MoMA.
Do you think Wednesday’s upturn signals a greater rally across the crypto markets? let us know in the comments below.