the bitcoin ( BTC -0.24% ) and Ethereum ( ETH -0.32% ) saw 24-hour gains of 3.9% and 3.2%, respectively. Leading cryptocurrency trading service Coinbase Global (COIN 5.24%) held a 7.2% price increase at the same time, while cryptocurrency-focused bank Silvergate Capital (SI 8.02 %) was up 5.6%.
It’s no surprise to see the biggest names in cryptocurrencies surging today as they were fueled by a handful of bullish news.
What you must remember
First of all, cryptocurrencies have taken a significant new step towards the traditional economy. A senior government official has called on the country of Malaysia to elevate cryptocurrencies to legal tender status.
Zahidi Zainul Abidin, Malaysia’s Deputy Minister of Communications and Multimedia, addressed the country’s parliament on Monday, asking lawmakers to accept bitcoin and other digital coins in addition to the Malaysian ringgit. The government began exploring the possibility of a state-backed cryptocurrency in January, but Abidin’s request could broaden that scrutiny by lifting the legal status of many existing cryptocurrencies.
Malaysia could become the second nation to take this step, after El Salvador which decided to accept bitcoin payments in addition to the US dollar. Malaysia has a larger population and economy than El Salvador. Therefore, anything that happens in Malaysia is more likely to move the needle for bitcoin and other long-term crypto names. That being said, cryptocurrency scrutiny in Malaysia is still in its infancy, while El Salvador has already made the leap to bitcoin.
Additionally, Malaysia is working with the governments of Australia, Singapore, and South Africa to establish an international payment system involving digital assets issued by each country’s central bank. The group researching the idea released a report on Tuesday morning, saying a prototype platform for cross-border digital payments is “technically viable.” Similar reviews are also taking place in major markets such as Switzerland and Hong Kong.
Ethereum has followed bitcoin’s gains to some extent. At the same time, the smart contract platform has continued to burn tokens as it nears a long-awaited technical upgrade. The next-generation Ethereum system will be faster and leaner, shifting from the power-hungry proof-of-work architecture to the green proof-of-stake alternative, and the inflationary creation of new Ether tokens will drop by 90% . Several popular media outlets picked up on Ethereum’s progress on Monday afternoon, adding fuel to the digital currency fire.
When Bitcoin andEthereum are on the rise, Silvergate and Coinbase are sure to follow. It’s not always the right market reaction, as both companies are more interested in high trading volumes of cryptocurrencies than high prices, but that’s life on Wall Street. The reasons behind every price move may not always make sense in the short term, although the market tends to be a very fair system of assessing long-term value.
Tuesday’s respectable price rise will not fully offset the weakness in the cryptocurrency market over the past few months, far from it. All of the stocks and digital coins mentioned above are still down 27% or more since the slide began in mid-November. In comparison, the S&P 500 stock index lost only 3% of its value over the same period:
In other words, prices are still low, and long-term crypto bulls should see a solid buying opportunity in this long-lasting market bottom. You won’t even remember the single-digit gains you missed on Tuesday against the backdrop of much larger long-term gains.
We would like to say thanks to the author of this short article for this outstanding material
Why are Bitcoin, Ethereum and crypto-related stocks soaring today? – The ₿log
Check out our social media accounts and also other pages related to themhttps://metfabtech.com/related-pages/