Cryptocurrency is reversing today. After a week of real pain for cryptocurrency, the No. 1 digital currency, bitcoin, and many altcoinsm have something to smile about.
On the eve of a meeting of Group of 20 finance ministers and central bankers in Buenos Aires, the Financial Stability Board, or FSB, issued a letter to the international finance ministers saying that cryptocurrencies do not pose any near-term systemic risk to the global financial system. So what?
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” wrote Mark Carney, chairman of the FSB. The FSB is an international watchdog that makes recommendations about the global financial system.
“This is in part because they are small relative to the financial system. Even at their recent peak, their combined global market value was less than 1% of global GDP,” wrote Carney, who is also governor of the Bank of England.
After the release, the price bitcoin rose by as much as $1,000 to an intraday high of $8,434.93 after spending a good part of the weekend under $7,500. Bitcoin was last traded at $8,347.67, up 1.8% on the day.
The G-20 could be a turning point for the cryptocurrency market as investors call for a global coordinated approach to govern the digital asset market.
“G-20 representatives must use this summit to work toward an agreement to adopt common regulations for cryptocurrencies. By doing so, they will position their respective countries on the right side of history,” said Nigel Green, chief executive of deVere Group.
It has been a tumultuous last two weeks for digital assets that have shed a combined $140 billion since the beginning of March. A raft of regulatory and advertising crackdowns pushed most digital assets to 2018 lows, and this trend looked to continue over the weekend when Sky News reported that Twitter would ban cryptocurrency ads, following similar actions from Facebook Inc. and Alphabet Inc.’s Google
However, the FSB news halted the skid, and major digital currencies followed bitcoin in recovering weekend losses.
Bitcoin, Ethereum, Litecoin and Tron all look happy with the news. Will it last, or will the bubble pop?
Your input is required
Disagree, or have your own opinion? SUBMIT AN ARTICLE TODAY
Feel like commenting? Do you want to join a community of investors and start making money, for free? Then REGISTER now:
We want you to join our community
Benefits of signing up for a FREE membership now:
-No more costly delays in waiting for material
-Dozens of publications per week, including news coverage, earnings commentary, analysis, politics, and more
-Access to special guest contributions, including from WSJ, CNBC, and prolific independent authors
–Ability to comment on articles
–Access to our weekly newsletter
-Publish your own opinion/analysis
Thank you for your readership, and for your loyalty.