Bitcoin price has hit a 24-hour high, surpassing $39,000. The reason is probably that Gary Gensler, the new Chair of the U.S. Securities and Exchange Commission (SEC), has stated that he thinks if people want to trade crypto, that is fine.
BTC/USD 4-hour chart | Source: TradingView
SEC Chairman Gary Gensle calls BTC speculative asset class; Bitcoin price hits $39,000 highs
During his recent talk with CNBC’s Squawk Box show, Gensler has stated that he views Bitcoin and hundreds of other cryptocurrencies traded by the community as a speculative asset class. If people want to trade them, that is fine, but Bitcoin, and cryptocurrencies in general, are often linked to fraud, scams, and money laundering, he said.
In this regard, Gensler emphasized that cryptocurrency trading platforms should be placed under a regulatory mechanism to protect traders as if they were trading on the NYSE. He believes that the lack of regulation here is not good for investors and not good for the technology on which cryptocurrencies are based.
“#Bitcoin and the hundreds of other coins that investors are trading is a speculative asset class,” says @GaryGensler. “The trading platforms they are on are not currently under a regulatory regime that protects them like they are trading on the NYSE.” pic.twitter.com/D5oieGeqWl
— Squawk Box (@SquawkCNBC) August 4, 2021
Given the above statements, it seems Gensler remains bullish on Bitcoin’s “potential.” This move ended a descending channel overnight. Some argue that the industry has welcomed him as a potential catalyst towards favorable Washington regulations. Even so, Gensler’s comment is a concern for newbie traders.
Elsewhere, data from Glassnode shows that the net growth of Bitcoin entities has surged to a new all-time high. The CIO of Moskovski Capital, Lex Moskovski, commented that this time, the number of active Bitcoin network participants has been growing at the fastest scale on an average weekly basis.
“Bitcoin entities net growth reached ATH. The wasn’t any period in its whole history when the number of active participants grew faster, averaged weekly”, he tweeted.
As AZCoin News reported, recent analytics data shows that holdings of Bitcoin whales have reached a major high since April.
Read more:
- Victory Capital Filed With The SEC To Launch A New Crypto ETF Based On The NASDAQ Crypto Index
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