The Bitcoin price (BTC/USD) and the cryptocurrency market as a whole have gotten a breather after global regulators indicated on Sunday that they do not consider digital coins to be posing a significant risk to the rest of the global financial system, at least at this particular time.
In a letter responding to the concerns of some G20 members, the Financial Stability Board, which is currently chaired by Bank of England governor Mark Carney, took a softer-than-expected stance on the nascent sector.
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“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system,” Carney wrote in the letter. However, he added that this assessment could change in the future, particularly if digital currencies were to become more widely used or “interconnected with the core of the regulated financial system”.
The news helped Bitcoin move higher on Monday, in a continuation of a rally that had started in the final hours of the Sunday session. Yesterday, the cryptocurrency hit a six-day high of $8,675.87, before finishing the session at $8,630.65.
Bitcoin has dropped slightly since the start of today’s session, signalling that the relief rally may have already hit a pause. The Bitcoin price is currently hovering around $8,500, according to data from cryptocurrency tracker Coinmarketcap. The data also shows that the rally has slowed down across the wider cryptocurrency market. At the time of writing, the total value of all digital currencies stood at $326.4 billion, down from the intraday high of $336.8 billion, reached in the early hours of today’s morning session.
In today’s trading, the Bitcoin price stood at $8,501.68, as of 10:14 GMT. The cryptocurrency has gained 2.7% in the past 24 hours.