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Bitcoin price (BTC/USD) returns above $8,000 following US Senate hearing

on Feb 7, 2018
Updated: Oct 11, 2019
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The Bitcoin price (BTC/USD) has returned above $8,000 after seeing a significant improvement in the past 24 hours.

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After dropping to an intraday low of $6,048.26, the original cryptocurrency saw a sharp rebound in yesterday’s afternoon trading, which allowed it to close the session at $7,754.00, according to Coinmarketcap. Riding the positive momentum, the digital coin was able to return above $8,000 in today’s morning session. At the time of writing, the Bitcoin price was hovering around $8,100.

The shift in momentum has been felt across the entire cryptocurrency market. Yesterday, the total value of all digital currencies fell to $279 billion, its lowest level since November 25. The market has regained more than $100 billion since hitting that low in yesterday’s morning session.

The improved sentiment is likely due to yesterday’s hearing of Securities and Exchange Commission chairman Jay Clayton and Commodity Futures Trading Commission Chairman Christopher Giancarlo before the US Senate Banking Committee. The hearing struck a tone that industry observers interpreted as cautiously optimistic.

In comments to industry website Coindesk, Stephen Palley, an attorney for Washington, D.C.-based law firm Anderson Kill, highlighted the level of knowledge demonstrated by both the members of the committee and the regulators about cryptocurrency.

Clayton and Giancarlo talked in their testimonies about what can be regulated, what should be regulated and what would be the appropriate regulatory approach to digital currencies. They also drew a distinction among three aspects of the cryptocurrency space – the cryptocurrencies themselves, initial coin offerings and distributed ledger technology, also known as blockchain technology. Both Giancarlo and Clayton pointed to potential applications of DLT in areas like financial markets infrastructure, data verification and record keeping, with the CFTC chair adding that “if there were no bitcoin, there would be no distributed ledger technology”.

The pair also talked about the unregulated nature of cryptocurrency exchanges and called for an interagency coordinated plan among states, federal regulators and the SEC and the CFTC to address a common misconception among investors that these types of platforms are regulated.

The need for a coordinated regulatory effort was also highlighted by senator Mark Warner, who criticised the the patchwork nature of regulation, which approved Bitcoin futures, while rejecting cryptocurrency ETFs

“The potential writ large amongst crypto assets and the underlying blockchain could be as transformational as wireless was years ago. I think we’re going to need a much more coordinated effort,” Warner said, as quoted by TechCrunch. Both chairmen agreed with his comment.

In today’s trading, the Bitcoin price stood at $8,164.90, as of 11:46 GMT. The cryptocurrency has gained 25.2% in the last 24 hours.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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