Bitcoin topped the psychologically key $9,000 level to hit a 10-day high Wednesday amid improved upon sentiment about government regulation.
The cryptocurrency climbed 9.7 percent to $9,346, its highest since Feb. 4, according to CoinDesk’s bitcoin cost index, which tracks prices coming from four major exchanges. As of 12:50 p.m. ET, Bitcoin was about 9 percent higher near $9,313.
“Sentiment has changed. The Senate hearing a week ago was positive. that will definitely helped to create a more optimistic view,” said Nick Kirk, quantitative developer in addition to data scientist at Cypher Capital, a cryptocurrency trading firm. He added that will news out of South Korea has been OK.
The latest reports about South Korean regulation marked a toned-down approach, in contrast to fears inside the last several weeks that will the government would certainly close down cryptocurrency exchanges.
English-language news site BusinessKorea reported Monday local time that will a government official involved having a virtual currency task force said Sunday that will the country is actually considering additional regulation similar to the “BitLicense” the fresh York State Department of Financial Services requires for cryptocurrency exchanges inside the state.
Bitcoin three-month performance
Separately, South Korean authorities plan to focus on taking action against illegal activity in cryptocurrency trading.
“The government’s basic rule is actually to prevent any illegal acts or uncertainties regarding cryptocurrency trade, while eagerly nurturing blockchain technology,” Hong Nam-ki, minister of the Office for Government Policy Coordination, said in a statement reported late Tuesday fresh York time by Reuters. “yet, the government is actually still divided with many opinions ranging coming from an outright ban on cryptocurrency trading to bringing the institutions that will handle the currency into the system.”
The statement was made in response to an online South Korean petition that will garnered more than 220,000 signatures to protest cryptocurrency regulation.
Bitcoin has struggled inside the last two months amid some back-in addition to-forth on cryptocurrency policy by South Korean regulators. The government did enact a ban on anonymous trading accounts in late January.
Japanese cryptocurrency exchange CoinCheck, which suffered the largest hack inside the industry, also successfully resumed yen withdrawals on Tuesday.
Bitcoin remains more than 30 percent lower for the year so far. yet with Wednesday’s gains, bitcoin is actually up about $3,000 coming from two-month lows hit last week, just ahead of a Senate Banking, Housing in addition to Urban Affairs Committee hearing on cryptocurrencies.
The chairmen of the U.S. Securities in addition to Exchange Commission in addition to Commodity Futures Trading Commission said that will different federal agencies are trying to coordinate policy on cryptocurrencies in addition to protect consumers. Their comments also focused on regulating sales of fresh digital coins, or initial coin offerings.
“The recent CFTC in addition to SEC talks have been positive towards ‘pure cryptocurrencies’ like bitcoin that will began with mining as opposed to an ICO, painting a bullish medium-long term picture,” said Alex Sunnarborg, founding partner of Tetras Capital. He added that will additional developments helping the longer-term outlook for bitcoin include the “impressive” growth of the Lightning Network, a system that will intends to accelerate bitcoin transaction speeds.