Bitcoin reaches its 10-day high and capped the psychological key $9,000 level amid improved sentiment about government regulations.
According to CoinDesk’s bitcoin price index, which tracks prices from four major exchanges, the bitcoin went up 9.7 percent to $9,346, its highest since February 4. It was about 9 percent higher near $9,313.
Nick Kirk, quantitative developer and data scientist at Cypher Capital, a cryptocurrency trading firm said, “Sentiment has changed. The Senate hearing a week ago was positive. That definitely helped to create a more optimistic view.” He also added that the news out of South Korea has been ok.
Bitcoin remains more than 30 percent lower for the year. But with Wednesday’s gains, bitcoin is up about $3,000 from two-month lows hit last week, prior to the Senate Banking, Housing and Urban Affairs Committee hearing on cryptocurrencies.
The chairmen of the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission said that they are trying to integrate a policy on cryptocurrencies and protect consumers. Their remarks were also focused on regulating sales of new digital coins, or initial coin offerings.
Bitcoin has been under conflict in the last two months amid back-and-forth cryptocurrency policy by South Korean regulators. The government enforced a ban on anonymous trading accounts in late January. While today’s comments are positive for cryptocurrencies traders, it remains to be seen whether rises can recover from January’s severe price drops.
On other cryptocurrencies, Ethereum also went up and traded at $838.20, while Ripple was also into similar climbs.