Bitcoin was up 2%, trading at $57,207, driven by the enthusiasm among traders amid news that the US lawmakers won’t ban cryptos.
The recent rally was driven by a couple of events that took place in the past week. Tuesday, October 5, the US Bank – the fifth largest retail bank in the country, revealed that its cryptocurrency custody service is available to fund managers. Also, on Tuesday, AMC Entertainment CEO Adam Aron tweeted that AMC theatres will start accepting dogecoin, along with other cryptos – bitcoin, Ether, Litecoin, bitcoin cash - as payment for gift cards.
Moreover, Bloomberg reported that the Biden Administration was considering an executive order that would direct federal agencies to study and offer recommendations on the crypto market. The order would clarify the responsibilities of agencies such as the Treasury Department, the Commerce Department, the National Science Foundation and national securities agencies.
Despite the positive measures favoring cryptos, the opinions are still divided. The bears point out that few consumers and companies will want to work with such unstable currency and that bitcoin proved to be a vehicle for speculation.
On the other hand, bulls note that the digital asset is a hedge against inflation and a store of value, protecting investors against declines in other markets.
Bitcoin added 27% in the past month, but it is still below the $64,863 exchange rate reported in April.
Sources: Bloomberg.com, cnbc.com, thestreet.com