Why Are Cryptocurrency Prices Rising?

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The crypto money market has moved upwards after a few days of decline. The rise in cryptocurrency prices resulted in a growth of almost 5% in total market value. Prices may have been influenced by several news reports since the beginning of the week.

Cryptocurrency prices had a green start to the day of March 3. Bitcoin is 51,697 with an increase of 5.90%; Ether is trading at $ 1,607, up 3.21%. Behind this dynamism in the market; There could be economic news from around the world and statements from the potential SEC chairman.

“Bitcoin triggered a change”

Gary Gensler, who was nominated by Joe Biden to become chairman of the Securities and Exchange Commission (SEC), appeared before the Banking Committee of the US Senate yesterday. Gensler, who is expected to take over the SEC, spoke about cryptocurrency regulations.

  • Gensler said, “Bitcoin and other cryptocurrencies have created a new perspective in terms of financial inclusion. But with that came some issues regarding investor security that still need to be examined. ” used the expression.
  • Gensler’s talk of scams and manipulations in the cryptocurrency market was interpreted as that they could take a more intense place on the SEC’s agenda.
  • These statements by Gensler, who is expected to be SEC Chairman, led to a decrease in the BTC price in the first stage. However, there were also names who evaluated his statements in the opposite direction. IS Investment International Markets Director Şant Manukyan said that Gensler “is a name who understands (crypto money)” and that his statements so far are “positive”.

“We have to be patient” message from the Fed

Lael Brainard, one of the Fed’s executives, spoke to the Council on Foreign Relations Tuesday. Commenting on the developments in the bond market last week, Brainard made some comments on the Fed’s inflation policy.

  • Fed Chairman Jerome Powell announced that the central bank’s average inflation target was 2%. Brainard, one of the bank’s executives, said it takes “patience” to achieve this goal, based on the economic data of the last decade.
  • Brainard stated that the central bank continues to monitor the markets. According to the report of the Wall Street Journal, “I follow the developments in the market closely. Some movements in the market last week caught my attention. It worries me if the financial conditions that will arise extend the way to our goal. ” said.

Support comes from banks

Major American banks have taken relatively positive steps towards the cryptocurrency market in the past few days.

  • Goldman Sachs set up a trading desk for Bitcoin in 2018, after which it ended this activity. According to Reuters, the bank is preparing to reopen this table. Avatrade analyst Naeem Aslam said, “We are seeing a new momentum coming towards Bitcoin. There is no doubt that the market perception of investors and traders is positive. ” he commented.
  • JPMorgan analysts said in the report they prepared on February 25, “Investors can allocate 1% of the basket to Bitcoin if they include more than one asset in their basket.” They announced that Bitcoin can take a place in the investment portfolio.

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