Dear clients,
Bitcoin hit $25,000 for the first time since August amid major gains in the cryptocurrency markets as investors eased concerns over US regulatory restrictions.
The largest digital currency was up 3% on Thursday and traded at $24,710 in Singapore. Smaller tokens such as Ether, Cardano and Polkadot have also jumped up.
The U.S. crackdown on some crypto products, as well as the New York regulator’s move to stop issuing BUSD, the third-largest stablecoin, hit digital assets earlier in the week. However, they continued to rebound from last year’s crash, given the almost 50% rise in bitcoin since the beginning of the year.
Cryptocurrency prices are moving along with global stocks. The latter are backed by bets that the Federal Reserve’s actions will be able to suppress inflation without plunging the US economy into recession.
The risk of bullish sentiment in global markets is that investors are too complacent about how high rates should be, as a prolonged tightening of monetary policy will hurt demand for various assets.
