After going negative earlier in the day, the biggest cryptocurrency by market value increased by as high as 3,2 percent to US$22 323 during New York trade. Since a number of regulatory actions were announced last week, it has primarily traded below that level. While Ether grew by 4,7%, Binance Coin increased by roughly 2%.
Shawn Cruz, head trading strategist at TD Ameritrade, said: “It’s amazing to me that you’re seeing crypto surge when you have the SEC continuing to crack down on a lot of these firms.” I’m not sure if I would fully anticipate that to continue.
Most cryptocurrencies fell Monday, with the native token of the Binance exchange dropping the most since a November market meltdown.
The New York State Department of Financial Services directed Paxos Trust Co. to stop issuing new tokens of crypto’s third largest stablecoin, a Binance-branded coin known as BUSD that has roughly US$16 billion in circulation.
Paxos also noted that the US Securities and Exchange Commission had notified the firm about a potential enforcement action. Kraken reached a settlement with the SEC last week.
Crypto-related stocks also rose, with Coinbase Global Inc. halting a seven day slide, while MicroStrategy Inc. jumped almost 9 percent.
Bitcoin spent most of last year trading in tandem with stocks, especially tech companies’ shares. They all got hit when the Federal Reserve began a campaign of raising rates and reducing liquidity to arrest the fastest inflation in decades.