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Bitcoin price stuck below $20,000 per bitcoin, down more than 70% from peak, ethereum and other top ten cryptocurrencies BNB
Now a top U.S. regulator says a comprehensive regulatory framework could lead to a boom in bitcoin and crypto markets — paving the way for institutional investors and doubling bitcoin’s market capitalization to around $700 billion.
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Commodity Futures Trading Commission Chairman Rustin Behnam said at a New York University Law School event this week that “growth can come from a well-adjusted position.” Coindesk. “Bitcoin could double if there is a CFTC-regulated market.”
The CFTC and the US Securities and Exchange Commission (SEC) are currently battling to regulate the crypto space, with lawmakers in the US and elsewhere moving closer to putting together a clearer regulatory framework this year. Last month, the Biden administration sent the bitcoin and crypto market a stark warning — possibly putting the $1 trillion market in conflict with regulators after the White House Office of Science and Technology suggested a possible ban on bitcoin.
In recent months, some of the world’s largest financial institutions have begun to distribute cryptocurrency services to their clients, and a recent survey of professional investors with $2.2 trillion in assets under management has returned large crypto price predictions.
“These existing institutions in the crypto space see a huge opportunity for institutional flow that can only happen if there is a regulatory framework around these markets,” Behnam said.
Meanwhile, many crypto industry executives have long called for more precise regulation, which they predict will open up the market to new entrants.
“Having regulatory transparency will facilitate adoption,” said Changpeng Zhao, CEO of Binance, the world’s largest exchange. Yahoo Finance In an interview. “For end users, I think the 95% of users who aren’t in crypto yet will get regulation to get them into crypto.”
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Stock prices and currency markets have been in turmoil this week as central banks around the world struggle to maintain stability in the face of sharp interest rate hikes by the Federal Reserve.
“Bitcoin is unusually stable and has begun to attract attention, a couple of central banks have intervened or are preparing to do so in order to protect their own currency,” said Yuya Haswgawa, crypto market analyst at Bitbank. In a note sent by email.
“This week is amazing as stock markets around the world are suffering losses, while Bitcoin continues to move sideways. However, the price has been unable to pick a direction for the past two weeks and is struggling. Back above $20,000.”
Bitcoin’s relative stability this week has cheered those in the crypto space, who see it as a sign of bitcoin’s inflationary potential.
“Trading around $20,000 in recent months, bitcoin has remained strong amid rising inflation, market turmoil and an all-out negative for the major cryptocurrency during the so-called crypto winter,” said Alex Adelman, CEO of Lolly, the bitcoin rewards app. in the email comments. “This period demonstrates bitcoin’s strength as a store of value during inflation.”