Bitcoin had a surge of approximately 7.5 percent on Thursday rising its value around $40.094. European Central Bank’s Christine Lagarde called for more regulations on crypto trading.
Look like the new policies and rules being formulated to regulate crypto trade has no effect of Bitcoin. The trade for Bitcoin was very bullish on Wednesday and Thursday morning making its value rise above $40,000 once again.
This week is being called very unpredictable for Bitcoin. The coin saw several highs and lows, falling below 10% in a single day. The volatility maybe because of the new investors joining in with the interest of securing profit and leaving. It has been observed, most of the investors are withdrawing as soon as some profit is made. Due to such practice, the market is seeing a move with the trade value of Bitcoin. Although Bitcoin has dramatically surged over 330% in a year.
Due to such rises and falls, currently, there is no unanimous opinion in the market about digital assets.
Miss Lagarde, President of the European Central Bank said on Wednesday that regulations are required for Bitcoin on a global level. She alleged that Bitcoin might be utilized as discreditable money laundering. She said that no matter what its supporters may argue, Bitcoin is no currency but a “speculative asset”. She meant that the currency has no value of its own and is being driven up bodies with ulterior motives.
In the last week, there was a leak about the U.S. treasury planning new rules to control the trade of cryptocurrency. The rule, reportedly, required users and exchanges to share the trade data with the U.S. government. Many are protesting against the new suggested rule and accusing the Treasury of “midnight rulemaking”. The government however says that it is being made to minimize illicit activities on the trade network.
BambosTsiattalou said that people invest in Bitcoin because they don’t trust the regular currencies. Mr. Bambos is a financial crime lawyer at London and has extensive experience with financial propositions. However, he is of the belief that such regulations would completely destroy the business of crypto and its charm.
Although, such regulations are in place or expected to be implemented. Speculations from big analysts and lawyers are not stopping the investors from spending in the crypto market. Analysts of Morgan Stanley said that due to the large drop in the US$ and unsure of new policies. People are looking for new ways to secure the value of their hard-earned money and therefore are investing in cryptocurrencies.
The market speculations have not affected the prices of Bitcoin, instead it has gone up. The future of these digital currencies is still unpredictable but they are definitely volatile and one must be careful while trading.