G-20 Does not Want to Cryptocurrency, Bitcoin Prices Soar
Bitcoin prices surged after the Group of 20 G-20 states expressed no desire to call for coordinated curbs on the currency market (cryptocurrency).
The largest digital currency soared 4.38 percent to $ 8,900 at 6:58 pm after moving in a range of $ 8,400 and $ 8,600 in the past day, according to Coinbase data. Bitcoin recovered from a drop below US $ 8,000 to a one-month low on Monday.
Although the G-20 highlights the increased risk of cryptocurrency, market participants are relieved that the ministers meeting it do not demand more stringent regulations, according to John Spallanzani, portfolio manager of Miller Value Partners.
Investors' concern about coordinated action has increased after ministers said they will discuss a common approach to digital currency at the Buenos Aires meeting.
"The digital currency is soaring because the G-20 does not really put pressure on cryptocurrency," Spallanzani said, as quoted by Bloomberg.
Bitcoin is still down more than 50% from an all-time high of almost US $ 20,000 in December following fears of global tightening regulations will reduce trade.
The G-20 communiqué says that digital coins are an asset, which "lacks the key attributes of a sovereign currency," and that "at some point they can have implications for financial stability."
The G-20 set a July deadline to decide the steps against the digital currency, without specifying the plan more specifically.