After dipping to around $7200, Bitcoin’s value has pumped to approximately $8500 starting last night. For many analysts, this increase in price has been attributed to an official report made by the Financial Stability Board Chair and Governor of Bank of England, Mark Carney:
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system.”
This statement was addressed to the Finance Ministers and Central Bank Governors, who are gathering for the G20 summit in Argentina starting March 20.
Since many investors anticipated that the G20 summit would result in a crackdown on cryptocurrencies, this report has led to increased optimism for investors in the market.
Carney has also states that cryptocurrency should not be banned, but rather regulated.
Moving forward, he will “identify metrics for enhanced monitoring of the financial stability risks” and as usage of these crypto-assets grow, he will “update the G20 as appropriate.”
It is highly likely that bitcoin will maintain its dominance over the market in a volatile period like this.
Currently at around 44% market dominance, steadily increasing since January, investors have been looking at Bitcoin as a safer investment than other cryptocurrencies. Primarily due to the fact that alt-coins lose value more quickly than bitcoin in a bear market (due to loss in BTC pairing value) and how BTC tends to be the first mover once the market reverses bullishly.