Bitcoin (^BTCUSD) is up over 9.0% on Sept. 9 to about $21,000 crossing the psychologically important $20,000 important level. Investors are starting to find legs after its huge downturn over the past month.
As you can see in the Barchart graph below the premier cryptocurrency, which now has a market capitalization of over $402 billion according to Coinmarketcap, is down from a peak of $24,887 in early August.
This chart shows that while I was writing the article the crypto dipped below $21,000, and indicates that the huge gain on Sept. 9 is very volatile. Note that just prior to the huge gains on Sept. 9, Bitcoin hit a recent low of $18,622 on Sept. 8.
Some analysts account for the recent rise due to a gain in the stock market on Sept. 9. In addition, investors could be cheered by the news today that FTX Ventures, a unit of cryptocurrency exchange FTX founded and run by billionaire Sam Bankman-Fried, has taken a 30% stake in Skybridge Capital. Skybridge is a hedge fund run by Anthony Scaramucci that has invested heavily in cryptocurrencies.
The report is that Scaramucci will use $40 million of the investment to buy more digital currencies. Bloomberg reported that Skybridge had invested $800 million of its $2.5 billion in assets in digital currencies at the end of June, or almost one-third at 32%.
Another market-moving news event for cryptocurrencies was a speech by SEC Chairman Gary Gensler. The SEC published a speech he gave yesterday saying that the vast majority of cryptocurrencies were securities and therefore need to be regulated. He vowed to work with Congress to regulate them.
There is a line of thinking in the markets that clearer regulation of digital currencies will allow more investors to feel comfortable investing in the asset class. This could be another reason why Bitcoin is soaring today.
More Crypto News from Barchart
/Semiconductor%20by%20Gorodenkoff%20via%20Shutterstock.jpg)
/An%20image%20of%20a%20Tesla%20humanoid%20robot%20in%20front%20of%20the%20company%20logo%20Around%20the%20World%20Photos%20via%20Shutterstock.jpg)
