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Bitcoin rises above $ 40,000 again as bulls ignore Christine Lagarde’s crypto warnings | Currency News Financial and business news



bitcoin
  • Bitcoin rose 7.5 percent on Thursday to $ 40,094.81.
  • The red-hot cryptocurrency has seen huge volatility in recent days, with thousands of dollars per coin added and deleted in short periods.
  • The excitement on Thursday came after European Central Bank chief Christine Lagarde called for more regulation the day before.
  • Morgan Stanley analysts say the bitcoin focus is “surprising”
    ; given the low yield on bonds
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Bitcoin rose sharply once again on Wednesday night and Thursday morning, climbing the $ 40,000 mark.

It was volatile for weeks for bitcoin, reaching a record high of nearly $ 42,000 last week before splitting. The price is constantly fluctuating around 10% per day as investors buy and withdraw from the cryptocurrency, which has grown by more than 330% in one year.

Bitcoin rose 7.5% to $ 40,094.81. Its smaller rival Ethereum rose 7.2 percent in 24 hours to $ 1,160.

The dramatic rise in the prices of bitcoin and other cryptocurrencies has sharply divided market opinion, pitting many – though not all – financial institutions against a new breed of online investors.

On Wednesday, the head of the European Central Bank, Lagarde, said that bitcoin should be regulated globally and linked it to “completely condemning money laundering”.

Read more: The $ 500 million crypto asset manager’s CEO breaks down 5 ways to evaluate bitcoin and decide whether to own it after the digital asset breaks $ 40,000 for the first time

She said bitcoin was not a currency, as many of its proponents claimed, but “a highly speculative asset that ran some fun business.”

Bambos Ciatalu, a financial crime lawyer at London’s Stokoe Partnership Solicitors, said tighter regulation would be a major problem for cryptocurrencies.

“A lot of people buy bitcoin and other cryptocurrencies because they’re worried and don’t trust fiat currencies,” so more regulation would destroy much of their appeal, he said.

Read more: Cathie Wood’s ARK Invest manages 5 active ETFs that have more than doubled since 2020. She and her analysts share their prospects for the economy, bitcoins and Tesla in 2021.

Yet despite raised eyebrows by regulators and central banks, the rising price has prompted some institutional investors to shop.

Morgan Stanley analysts said in a note: “With the dollar’s sharp decline, deeply negative real returns and continuing policy uncertainty, investors are looking for alternatives to traditional cash.”

They added: “Innovation in digital assets is continuing rapidly and is likely to increase
institutional participation over time. “

However, analysts warned that “perceptions of ‘value’ and demand could vary significantly, for example due to changing regulations.”

Read more: “Technically unrelated”: Market strategist breaks down 3 indicators that show Tesla is overvalued – and says that’s due to a 17% correction over the next 6 weeks


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