The incoming U.S. SEC Chairman, Gary Gensler, gave his piece of mind on the need to weed out frauds from the crypto market. Any crypto investors would definitely go along with that.
And although the market dipped after Gensler’s comments, the price of Bitcoin has rebounded to breach the US$50,000 level pretty convincingly.
After about two weeks of turmoil with Bitcoin plummeting from a high of $58,000 to $43,000, the bellwether cryptocurrency has seen its price recovering to nearly $51,000.
The altcoin market is still playing catch up though. Popular ones like UNI, ADA, BNB and LINK are slowly inching up to recover lost grounds.
The macrofundamentals for Bitcoin are more robust than ever. So much positive news have poured in to lend credence to Bitcoin as an alternative asset to gold and a better store of value than cash. Notably, Tesla’s mega purchase of Bitcoin worth $1.5 billion and MicroStrategy Inc’s insatiable appetite for Bitcoin (repeated debt offerings to fund Bitcoin purchases) have helped elevated Bitcoin as an emerging asset class.
Even the large banks like Citi, JP Morgan, Goldman Sachs have all started to dabble in one way or another into the cryptocurrency market.
Yes, Bitcoin is growing in popularity but the U.S. SEC would need to create a robust framework in order to reduce frauds as much as possible. This would create a healthier environment for Bitcoin to push ahead with the support of the retail market. The Gamestop saga has shown the power of the people. But, the people needs protection. The U.S. SEC will do just that and be also careful not to stifle innovation in the cryptocurrency space. Afterall, it is a movement which is unstoppable among the people as the Nigerians have shown.
