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Bitcoin price is stuck below $20,000 per bitcoin, down more than 70% from all-time highs, while ethereum and other top ten cryptocurrencies BNB
Now, a top US regulator has said the bitcoin and crypto market could be heading for a price spike if a comprehensive regulatory framework is put in place, potentially paving the way for institutional investors and doubling the market capitalization of the market. bitcoin at around $700 billion.
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“Growth could happen if we have a well-regulated space,” Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said at a University of New York School of Law event this week. York. reported by Coindesk. “Bitcoin price could double if there is a CFTC-regulated market.”
The CFTC and the U.S. Securities and Exchange Commission (SEC) are currently battling for control of the crypto space, with lawmakers in the U.S. and elsewhere moving closer to putting in place a more regulatory framework this year. light. Last month, the Biden administration sent a stark warning to the bitcoin and crypto market, potentially putting the $1 trillion market on a collision course with regulators after the Office of Science and Technology from the White House suggested that bitcoin could be banned.
In recent months, some of the world’s largest financial institutions have begun rolling out cryptocurrency services for customers, while a recent survey of professional investors who collectively manage $2.2 trillion in assets revealed a huge crypto price prediction.
“These established institutions in the crypto space see a huge opportunity for institutional inflows that will only happen if there is a regulatory structure around these markets,” Behnam said.
Meanwhile, many crypto industry executives have long called for tighter regulation, predicting it will open up the market to new entrants.
“Having clear regulations will actually make adoption easier,” said CEO of the world’s largest exchange, Binance, Changpeng Zhao. Yahoo finance in a interview. “I think for mainstream users, 95% of users who aren’t into crypto yet, regulation will make it easier for them into crypto.”
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Stock prices and currency markets have been thrown into turmoil this week as central banks around the world struggle to maintain stability in the face of huge interest rate hikes from the Federal Reserve that have pushed the U.S. dollar higher. record highs against other currencies.
“Bitcoin is starting to catch the eye as being relatively stable than usual, while a few central banks have intervened in some form or are preparing to do so in order to defend their own currencies,” said Yuya Haswgawa, market analyst at cryptography at Bitbank. in an e-mail note.
“This is, in a way, impressive as stock markets around the world are taking losses this week, while bitcoin continues to swing sideways. However, the price has been unable to pick a direction at the moment. over the past two weeks and is struggling to recover above $20,000.”
Bitcoin’s relative stability this week has been cheered by those in the crypto space who see it as a sign of Bitcoin’s inflation-hedging potential.
“Trading tightly around $20,000 in recent months, bitcoin has remained resilient in the face of rising inflation, market turmoil and the so-called crypto winter creating unfavorable conditions for the major cryptocurrency,” said Alex Adelman, CEO of bitcoin rewards app Lolli. in the comments sent by e-mail. “This period illustrates bitcoin’s strength as a store of value in times of inflation.”