After enduring a rough week, the cryptocurrency market was given a long-awaited respite. Investors finally had the chance to breathe a sigh of relief as the market was once again filled with a sea of green. Most cryptocurrencies were starting to recover from the crash, with Bitcoin in the lead.
The price of Bitcoin climbed back to $7,000+ levels as it approached the $8,000 mark, according to data from CoinMarketCap. Along with Bitcoin’s recovery, other major cryptocurrencies began to recuperate as well. Ethereum rose past $800 for a brief moment today, while NEO had the biggest comeback rally amongst the top ten cryptocurrencies – increasing by over 50% to regain its three-digit price tag once again.
The total value of all cryptocurrencies also saw a 33% increase, going from $276 billion to $368 billion in 24 hours. Global trading volumes also showed signs of recuperation, as $34 billion exchanged hands today across the 8606 markets that are monitored by CoinMarketCap.
Why This Happened
This slight (but promising) market rebound can be attributed to the Senate Hearing at Capitol Hill this morning.
At the hearing, the chairmen of both the SEC and the CFTC appeared before Senate Banking Committee today to discuss their regulatory approach to a crypto market, which is rife with fraud and abuse. With two major players in the world of potential cryptocurrency regulation discussing Bitcoin, blockchain, and the future of the technology, a lot was at stake today.
Fortunately, the hearing went really well, with both government entities agreeing that cryptocurrencies and the technology that they bring should be embraced rather than dismissed.
In front of the entire Senate – which included the Banking, Housing, and Urban Affairs Committee, J. Christopher Giancarlo – chairman of the CFTC defended cryptocurrencies and preached the importance of blockchain technology for future generations.
“We owe it this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response, not a dismissive one,” he said. “(However), we must crack down hard on those who abuse our young enthusiasm for Bitcoin and blockchain technology for their own personal gains.”
CFTC Chairman Giancarlo: “We owe it this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response, not a dismissive one.” pic.twitter.com/0v4M5gExfc
— Coin Center (@coincenter) February 6, 2018
With both the SEC and the CFTC taking a fairly bullish stance on cryptocurrencies, things are finally beginning to look good for crypto. Although it comes as a surprise that high-ranking officials in Washington D.C. feels strongly about this situation – Giancarlo even went as far as to explain what does the term “HODL” mean to the entire Senate – it is exceedingly important that they feel this way. After all, it is a step in the right direction for cryptocurrencies if they want to survive and thrive – instead of resisting government regulations, why not collaborate with them to help improve the still-maturing crypto market?
As for the price of Bitcoin – no one really knows what’s going to happen next. It might return to its glory days thanks to the news, or it might just tank again tomorrow morning. Only time will tell