An increase in Bitcoin saw the token rise above $25,000 for the first time since August. This was amid wide gains in crypto markets, as investors shrugged off concerns about a US regulatory clampdown.
- In August 2022, Bitcoin was last traded at or above $25,000
- Despite US regulatory crackdowns on crypto, tokens are rising despite the US’s regulatory crackdown.
As of New York’s 10:57 AM, the largest digital asset climbed 3.4% to $25,000.02 Other tokens, such as Ether and Cardano, pushed higher.
#Bitcoin hits 6-month high #BTC The world's largest #cryptocurrency reached $24,895 (£20,779), its highest since August 2022, after jumping 9.5pc on Wednesday. It has since been trading for around $24,400 (£20,366) #BTC has risen nearly 50pc so far this year from around $16,500 https://t.co/5EftEplMQf pic.twitter.com/4IWQyezQ5z
— Share_Talk ™ (@Share_Talk) February 16, 2023
At the beginning of the week, digital assets were affected by a US crackdown on crypto products and a New York regulator’s decision to stop the issuance of BUSD, which is the third-largest stablecoin. They have seen a rebound since last year’s rout. This includes a nearly-50% year-to-date climb in Bitcoin.
Cici Lu, founder and CEO of Venn Link Partners, a crypto adviser, stated that the momentum in crypto is likely to make bearish bets less popular, which will further propel the rally.
She said that people forget that Bitcoin’s free float can sometimes be restricted and that when the shorts are squeezed, the price just pops.”
According to Coinglass data, $64.5 million worth of Bitcoin short positions were liquidated Wednesday. This was the largest in about a month. These liquidations were in addition to a nearly 9% increase in Bitcoin’s price on February 15.
As global stocks rise, crypto prices are rising. These prices have risen due to bets that Federal Reserve interest rate hikes will reduce inflation and not cause a US recession.
There is a risk that global markets will be too sanguine about the future. Investors may become too comfortable with how high rates can go. As a result, there could be a decrease in demand for various assets.
