Bitcoin (BTC-USD) on Thursday pared back most of its losses from the prior session that stemmed from the Federal Reserve pushing back against cutting rates for this year.
The token bounced as much as 4.8% to $28.75K earlier in the session, but then erased some of those gains to change hands at $28.18K as of 3:46 p.m. ET, even as regulators continued to crack down on the crypto industry. On Wednesday, BTC hit an intraday low of $26.74K, so the current rebound is notable.
Similarly, ethereum (ETH-USD) perked up 5.4% to $1.81K after reaching as low as $1.73K post-Fed. Overall, the global crypto market cap gained 2% to $1.17T, data from CoinMarketCap showed.
Crypto prices were unbothered by the U.S. Securities and Exchange Commission sending a Wells notice to crypto exchange Coinbase Global (COIN), whereby SEC staff recommended enforcement action against the company for allegedly breaching securities laws. COIN plummeted 15% at the time of writing.
Shortly thereafter, the regulator voiced concerns about the crypto trading platforms that may not be complying with federal securities laws, warning that the risk of loss for crypto asset investors “remains significant.” Some suggest increased crypto regulation is a positive for the space as it pushes out the so-called bad actors and protects investors from fraud and manipulation, thus boosting investor confidence.
Crypto-exposed stocks were mostly gapping higher towards the end of the session, with Riot Platforms (RIOT), +15%, Bakkt (BKKT), +14.7%, BIT Mining (BTCM), +11.8%, and Hut 8 Mining (HUT), +8%, among the biggest gainers.
SA contributor The Freedonia Cooperative, meantime, views bitcoin (BTC-USD) as a Buy as the market value-to-realized value ratio is indicating the “next bull run may already be underway.”