Bitcoin’s market size is now $1 trillion, after the cryptocurrency token traded as high as $55,000. The first time the cryptocurrency had reached that price was in February 19.
On Wednesday morning, the price of Bitcoin reached $55,499 on the Bitstamp exchange. This is the highest price the cryptocurrency has reached since May 12, when the price of the cryptocurrency fell because Elon Musk dismissed the idea of accepting Bitcoin as a means of payment due to concerns over the high electricity usage required to mine.
The run in price seems to be unique to Bitcoin, as other cryptocurrencies such as Ether or XRP have had a lackluster day during the day. While Bitcoin has grown by 7% in the last 24 hours, the rest of the market has barely surpassed 1% growth.
Despite the complete ban on cryptocurrency transactions in China, as well as the sighting of a new regulatory burden from both the SEC and the Federal Reserve, as well as from the American legislature, the cryptocurrency market remains optimistic.
On the SEC side, its chairman Gary Gensler has stated that cryptocurrencies behave more like financial assets, rather than exchange currency, so he sees fit to increase regulation on crypto.
Jerome Powell, the president of the FED has commented on the need to regulate Stablecoins, which due to their low volatility quality work as a store of value for crypto trades in order not to be exposed to market volatility when they are not trading.
Finally, in the infrastructure plan that is about to be voted on in Congress, cryptocurrency brokers will have to disclose information on transactions within their platforms to the Internal Revenue Service (IRS).
Despite the regulatory burden approaching cryptocurrencies, the market remains optimistic and today the Bitcoin recovered again after a mediocre year.