Bitcoin Moves Higher, Retests $11,000 Level

Date | 19-02-2018 - 05:12 PM Article Type | Stock Markets Region | World - The price of digital currency bitcoin moved higher on Monday after climbing back above the $11,000 for the first time in four weeks over the weekend before surrendering gains.

Bitcoin was trading at $10,731 on the Bitfinex exchange by 04:31 AM ET (09:31 AM GMT), up around 3.21% for the day.

It hit its highest level since January 30 at $11,250 on Sunday, before ending the day down 6.1%.

Bitcoin has rebounded after falling to a more than two month low of $6,000 on February 6, but the price remains around 20% lower for the year to date.

Cryptocurrency prices tumbled at the start of the year as governments clamped down on trading and major banks implemented a ban on using credit cards to buy digital currencies.

Prices were also been hit by fears over potential price manipulation. U.S. regulators are investigating the Bitfinex exchange over its links to digital asset Tether, amid fears that it is being used to artificially inflate bitcoin prices.

But fears of a heavy handed crackdown eased after South Korea indicated last week that it will allow cryptocurrencies to continue operating in the country, welcome news for investors who had feared an outright ban.

Recent comments from U.S. financial regulators that balanced the need for regulation with consumer protection have also helped prices recover.

The regulators comments echoed those of U.S. Treasury Secretary Steven Mnuchin, who has said that his number one concern on bitcoin was its use in criminal activity.

Other major cryptocurrencies traded higher, with Ethereum, the world’s second largest cryptocurrency by market cap, rising 1.81% to $936.51.

The third largest cryptocurrency Ripple was up around 2.78% to $1.10.

Author: Heng V. Mony
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