The SEC moved forward in recent weeks against certain cryptographic products and decided to end the mechanism through which the company Paxos issued BUSD, the world’s third largest stablecoin managed by Binance, the world’s largest cryptocurrency exchange.
The decision hit digital assets early last week, although they have since recouped the slide and extended the rally that cryptocurrencies have recorded since the start of 2022.
So far this year, Bitcoin registers an increase of almost 50%, going from about US$ 16,000 per unit to US$ 25,000 registered last week.
“Crypto momentum is likely to cause speculators to close their bearish bets, further fueling the rally,” Cici Lu, founder of Venn Link Partners, a firm that provides blockchain technology consulting services, told Bloomberg.
Some $64.5 million of short Bitcoin positions were liquidated on Wednesday, the most in about a month, according to data from Coinglass.
That is, those who were betting on the price of Bitcoin lost more than US$ 60 million, after its price jumped more than 9% on February 15.
The rise in cryptocurrency prices comes as stocks of companies on Wall Street advance, fueled by bets that the Federal Reserve’s interest rate hikes will manage to control inflation without sending the United States into a recession. .
Still, speculation about an end to tough rate hikes poses a risk to global market optimism as investors may be too complacent about what the Fed’s policy will actually be in the coming months. .
Further monetary tightening, or its extension beyond expectations, could curb demand for a variety of assets, such as stocks or cryptocurrencies.
Source: Ambito
