It seems cryptocurrency investors took well to the Senate's somewhat unenthused approach to regulation Tuesday. Here are the headlines you need to know for Wednesday, Feb. 7.
Prices Regain Poise
All 100 of the top cryptocurrencies by market cap were trading higher Wednesday afternoon. Bitcoin rallied well above the $8,000 threshold to gain as much as 20% in 24 hours at one point in early trading. By the afternoon, prices were solidly higher as much as 11%, according to pricing data from Coinmarketcap. Wednesday's bitcoin high reached nearly $8,600. Overall cryptocurrency market cap remains below $4 billion as of Wednesday afternoon, tallying about $388 billion.
Grayscale's New Fund
Grayscale, which previously launched the Bitcoin Investment Trust (GBTC) , announced Wednesday it is launching a fourth fund aimed at helping institutional and accredited investors gain exposure in cryptocurrencies, according to a report from Coindesk. The new fund, called the Digital Large Cap Fund, will include bitcoin, ether, ripple, bitcoin cash and litecoin -- the five largest cryptocurrencies by market cap. The fund will go through rebalancing at the end of every month in order to account for changes in market cap rankings among crypto assets.
Singapore Okays Crypto
The government of Singapore reportedly sees no need to halt cryptocurrency trading, according to a written response to legislators from deputy prime minister Tharman Shanmugaratnam. He said that cryptocurrencies pose no real or imminent threat to Singapore's financial system and that the government has been closely monitoring the nascent market's development to watch for such threats.
Goldman Sachs Group Inc. (GS) said in a note that most cryptocurrencies will likely fail and crash to zero, according to CNBC. Goldman analysts compared the crypto market to the "internet bubble of the late 1990s," saying the coins lack any intrinsic value. Part of the concern stems in the high correlation among different cryptocurrencies. When one goes up, most follow -- and conversely, when one crashes, the others can be expected to do the same.
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