- Bitcoin rose 7.5% on Thursday to $ 40,094.81.
- Hot cryptocurrency has experienced massive volatility in recent days, with thousands of dollars per currency added and erased within short periods.
- Thursday’s rally comes after European Central Bank President Christine Lagarde called for more regulation the day before.
- Morgan Stanley analysts say the Bitcoin focus is “unsurprising” given the decline in bond yields
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Bitcoin It rose sharply again on Wednesday evening and Thursday morning, surpassing the $ 40,000 mark.
It’s been a choppy few weeks for Bitcoin, as its price reached an all-time high of near $ 42,000 last week before paring. The price is constantly hovering around 10% daily as investors buy in and out of the cryptocurrency, which is up over 330% in a year.
Bitcoin rose 7.5% to $ 40,094.81. Its smaller rival Ethereum was up 7.2% in 24 hours to $ 1,160.
The massive spike in the price of Bitcoin and other cryptocurrencies has led to a sharp split in market sentiment, putting many – if not all – of the financial institution in the face of a new breed of online investors.
Wednesday, Lagarde said the European Central Bank president Bitcoin needs to be regulated at the global level and linked to “totally reprehensible money laundering”.
Read more: The chief information officer for a $ 500 million crypto asset manager breaks down 5 ways to evaluate bitcoin and decide whether to own it after the $ 40K digital asset breaks out for the first time
She said Bitcoin is not a currency, as many of its supporters argue, but “a very speculative asset that has led to some hilarious acts.”
Bambos Tsiattalou, a financial crime attorney at Stokoe Partnership Solicitors in London, said tighter regulation will be a major problem for cryptocurrencies.
“A lot of people buy bitcoin and other cryptocurrencies because they are worried about fiat currencies and don’t trust them,” he said, so a bigger regulation would eliminate much of its appeal.
Analysts at Morgan Stanley “With the drastic decline in the dollar, extremely negative real returns and continuing policy uncertainty, investors have been looking for alternatives to traditional cash holdings,” he said in a note.
They added: “Innovation in digital assets continues rapidly and is likely to lead to an increase
Institutional participation over time. “
However, analysts cautioned that the ‘perception of’ value ‘and demand could differ materially, for example due to changing regulations.