Key Takeaways
- Bitcoin hovers above $37,000, up over 3% for the week
- Global regulators push for introducing a regulatory framework on cryptos
Bitcoin Steady Above $37,000
The world’s largest cryptocurrency asset, Bitcoin, has been trading moderately to the upside since the early hours on Friday. The orange coin was able to reach a session high of $37,500 boosted by increased investor appetite ahead of the weekend.
Presently, the digital asset is trading slightly above the $37,000 mark, as it remains in positive territory for a third straight day. Since Wednesday, Bitcoin has appreciated by 15% as the mood has been relatively improved after the market experienced its worst crash in years.
On Thursday, the price of Bitcoin pushed to a weekly high of $38,400. However, bulls could not sustain the upside and soon after the crypto asset slipped, barely making it in the green for the day. Bitcoin ended trading yesterday essentially flat around the $36,400 level. Nevertheless, the crypto coin’s performance promises to end the week with gains, currently up 3.1% Monday-to-date.
Global Regulators Push For Crypto Framework
Meanwhile, as the cryptocurrency market still struggles to recover from the major losses in May, global regulators continue to push for rules and requirements over the digital asset market. Accordingly, the world’s most powerful banking regulator, the Basel Committee on Banking Supervision, came out with a 25-page report yesterday. The report states that banks with exposure to the volatile crypto tokens should face stricter capital requirements to reflect the higher risks.
“The growth of crypto assets and related services has the potential to raise financial stability concerns and increase risks faced by banks,” the report mentions. Among the risks taken into consideration, the banking standards-setter cites market and credit risk, fraud, money laundering, hacking and terrorist financing risk.
Yet the report makes the distinction between stablecoins and the rest. Because Stablecoins, pegged to a sovereign currency, would qualify for existing rules if they stayed stabilized “at all times”. Therefore, Bitcoin and the other volatile coins would go into a new more strenuous regime.
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