Bitcoin bounced back from its roller coaster weekend and prices were on track for the biggest gain in more than three months.
The world’s largest cryptocurrency gained 12%, trading at $ 37,598 as of 1:17 p.m. in New York. It rose to $ 38,683 at one point. Digital currencies have been hit by volatility for the past two weeks, with Bitcoin prices falling as much as 18% on Sunday.
Traders may feel more positive as the crypto industry holds one of its biggest conferences of the year this week. Federal Reserve Governor Lael Brainard noted at the consensus conference that the impact on the financial system is a big problem for central banks in relation to a digital currency.
If people can keep digital dollars in a wallet that has nothing to do with a bank account and can easily use that wallet for payments and transfers, it will undermine the commercial banking system, Brainard said. It could starve banks on deposits, which of course are vital to lending, she noted.
Bridgewater’s Ray Dalio said there is currently little incentive to hold dollars without paying interest. At some point, people will go to “just about anything” – stocks, gold, bitcoin and real estate, he said during the conference webcast.
Meanwhile, Wyoming Senator Cynthia Lummis said on a separate panel at the virtual conference that Bitcoin is a “friendly good that anyone can hold,” adding that she sees it as a “level playing field”. And when it comes to government or central bank backed digital currencies, “we have to compete with China,” Lummis said. “We want to make sure we continue to be strong at innovating in digital assets.”
“Love or hate it, Bitcoin is affecting the markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note on Sunday. “What is Bitcoin – a currency? A 1-to-1 manifestation of Elon Musk’s thoughts?” A ‘factor’ for momo + meme + speculation + angry Gen Z? Like a tween Justin Bieber, you don’t yet know what Bitcoin will be – but you have a feeling that it will be big. “
Ether, the second largest token, also rebounded on Monday, rising more than 23% to around $ 2,559 at one point on Monday.
The extreme volatility of recent times has led analysts to guess the outlook for digital currencies. A team at JPMorgan Chase & Co. said it was premature to announce the end of the bitcoin sell-off. Goldman Sachs Group Inc. signaled that extreme fluctuations are affecting the attractiveness of crypto for institutional investors.
This story was published by a wire agency feed with no changes to the text.
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