Bitcoin (CRYPTO: BTC) returned (baby). After months of falling into a price channel between $30,000 and $40,000, the cryptocurrency jumped above $50,000 per coin on Monday. What may surprise you, however, is that other cryptocurrencies perform better.
Here’s how prices have changed over the past 24 hours (as of 10AM ET) for many of the biggest names in the cryptocurrency space, according to Coindesk price trackers:
- Bitcoin (CRYPTO: BTC) It rose 2.6%.
- Ethereum‘s (CRYPTO: ETH) Better performance – 3.6% increase.
- XRP (CRYPTO: XRP)The token closely related to Ripple, posted a gain of 4.2%.
- And Dogecoin (CRYPTO: DOGE) It brings up the butt by 1.5%.
Today is the first day in three months that Bitcoin broke the $50,000 mark. But while Bitcoin’s surge may be at least part of the reason why other cryptocurrencies are following along, this is still more of a description than an explanation of what’s happening today.
So what else is going on in the cryptocurrency world today?
Well, as CNBC reports, PayPal Collectibles (NASDAQ: PYPL) It just launched a cryptocurrency service in the UK, allowing users to buy, sell and hold cryptocurrency in their PayPal accounts. CNBC notes that this is PayPal’s first major expansion of cryptocurrency services outside the US – but it probably won’t be the last. As the Bitcoin market grows, it only makes sense for the demand for and price of Bitcoin to grow.
Now, at the same time, The Wall Street Journal He points out that the “cryptocurrency boom” around the world is beginning to attract the attention of regulators. However, the magazine He also notes that “coordinated oversight of cryptocurrencies appears to be limited in the US, Europe and Asia” so far. While regulators “are scrambling to catch up…it won’t be easy…to rein in a rebellious industry that has embraced the tech world’s scheme to aggressively roll out new products to gather users quickly,” magazine Says.
In the US, new Securities and Exchange Commission Chairman Gary Gensler (and others) has called for tough regulation of the cryptocurrency market, calling it the “Wild West” and urging it to be reined in. In Europe, regulators seem more concerned about “catching fraud” and “ensuring transparency,” he notes magazine – but also “protecting the sovereignty” of the nation-states and currencies they favor. Meanwhile in Asia, China is taking a kind of schizophrenic approach to regulation, on the one hand “eradicating crypto-related activities” that others have initiated – but on the other hand trying to create its own state-controlled digital currency.
Is this good news or bad news? As I argued earlier, although crypto enthusiasts might in their first reaction tend to encourage a lack of “coordinated crypto oversight,” more coordinated regulation might actually be a good thing for the crypto market, smoothing out panic-inducing price swings, and bringing in a bit Of predictability and – do you dare say that? The security of investing in cryptocurrency.
With big players like PayPal entering this market, don’t be too surprised if you see them starting to push for regulation themselves.
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