Bitcoin
was rising Thursday after a wild swing in prices briefly saw the cryptocurrency lose more than $2,000 in value the previous day.
Bitcoin
has gained 0.4% over the last 24 hours to $28,934. The price of the largest cryptocurrency rose to near $30,000 on Wednesday before diving below $27,500 and then recovering.
Cryptocurrency traders on social media pegged the move to rumors of Bitcoin sales by the U.S. government, which were subsequently debunked.
Cryptocurrencies have been boosted by a renewed attention on potential fragility in the U.S. banking system as
First Republic Bank
(ticker: FRC) remains under market pressure over its falling deposits.
However, the sector is likely to remain restrained by uncertainty over U.S. regulators’ approach to regulation of cryptocurrencies. The latest sign that crypto companies are looking to expand away from the U.S. was an announcement last Friday from the Gemini exchange that it intends to establish a non-U.S. crypto derivatives platform.
“Bitcoin is still facing a ton of resistance and this current rally will likely struggle until we get a clearer regulatory framework for cryptos,” wrote Ed Moya, a market analyst at Oanda, in a research note.
Beyond Bitcoin,
Ether
—the second-largest crypto—dropped 0.6% to around $1,882. Smaller cryptos or altcoins were mixed, with
Cardano
gaining 0.3% and
Polygon
down 2.2%.
Dogecoin
was down 1.4%.
Write to Adam Clark at [email protected]
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