The crypto bulls have initiated a wave of gains in the crypto markets. Bitcoin’s positive break of the $10,000 mark seems to have revived the entire crypto space.
The price of Bitcoin at 4: 30 hours UTC on 13th February is $10,413. Along with considerable gains in altcoins, the total market capitalization of crypto markets is $305 billion. The dominance of Bitcoin is currently around 61.8%.
While the technical charts are pointing up, a new regulatory threat seems to be developing to quiet the run.
Pause for Regulatory Cause?
The US FinCEN department plans to make significant changes in the rules for cryptocurrencies. In his recent address before the Senate Finance Committee, Treasury Secretary Steven Mnuchin recognizes crypto as a ‘safe haven’ for parking illegal funds similar to Swiss accounts. He said,
“We want to make sure that technology moves forward, but on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts,”
The Financial Regulatory bodies in the US could look to stifle the flow of unsolicited cross-border transactions. It could also attempt to curb suspect manipulations in trading on exchanges.
Nevertheless, most crypto exchanges in the US already underwent massive changes in the last couple months. This includes Binance opening a separate unit for the US. Moreover, it also drove various exchange like Poloniex and Bittrex out of the US.
Moreover, there are thousands of cryptocurrencies in the market currently. The SEC has is watching over the launch of new cryptos, and has also imposed fines on unregulated sales in the past.
Furthermore, recently, SEC commissioner, Hecter Peirce proposed a three-year incubation period for new digital assets to be categorized as a security or a commodity.
Currently, Bitcoin is the only asset completely accepted as commodity, alongside positive recommendations for Ethereum and Litecoin as well. Just as things were looking positive around the regulatory front, stringent regulations threaten an adverse blow. In the past, they have been the primary reason for many crashes in Bitcoin.
Futures Traders and Institutions Still Bullish?
On the other hand, Bitcoin has been establishing it’s status quo as a safe haven. Leading finance news outlet, CNBC recently covered the break above $10,000 with a positive note.
Hit every narrative in 99 seconds:
-Weak hands out
-Gold rallying, why shouldn’t btc?
-Central banks going nuts = bull case for bitcoin
-Chinese buying cuz Corona?
-CBs rushing to deval = bitcoin wins
-“In world of fiat currencies, bitcoin is the victor”
Honestly, I just can't get over this video. pic.twitter.com/DzX31Tb41r
— Nathaniel Whittemore (@nlw) February 12, 2020
Do you think new regulations could put a stop to the bull run or will further strengthen positive believes? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com