News
Bitcoin briefly rises above $59,000
Key points
- The price of bitcoin surged above $59,000 in the early hours of Wednesday in the United States, before settling slightly at around $57,600.
- Germany continues to divest bitcoin seized from an online piracy website by selling it to cryptocurrency exchanges, and for the first time, its on-chain investments are now valued at less than $1 billion.
- Spot bitcoin exchange-traded fund (ETF) inflows into the U.S. have surpassed $500 million this week.
- The U.S. House of Representatives is voting on a bill that could overturn the Securities and Exchange Commission’s (SEC) current policy on cryptocurrency custody for traditional banks, but the vote is likely to fail.
- The chairman of the Commodity Futures Trading Commission (CFTC) expressed concern about the lack of legislative action on cryptocurrencies during a congressional testimony on Wednesday.
Bitcoin (BTC) price surged above $59,000 in early U.S. hours Wednesday before settling back to the $57,400 level in the afternoon. The largest cryptocurrency by market cap remained range-bound amid selling pressure from Germany and inflows into bitcoin exchange-traded funds.
German sell-off, spot Bitcoin ETF inflows steady Bitcoin
In Germany, government-seized bitcoins fell below $1 billion for the first time, after several days of dumping on cryptocurrency exchanges. The initial on the chain stockpile of about 50,000 bitcoins originally seized from Germany from online piracy website Movie2k is now down to 13,110, according to data from Arkham Intelligence.
Despite Bitcoin Dumping from Germany, US Bets on Bitcoin exchange-traded funds (ETFs) have seen strong inflows in the first two days of the week. According to Farside Investors, these ETFs saw a combined $511.2 million in inflows on Monday and Tuesday.
Congress and Democrats Take a Stand on Cryptocurrencies
Wednesday could also be a big day for cryptocurrency regulation in the United States, as the U.S. House of Representatives will vote on an attempt to overturn President Biden’s veto of a bill that would overturn the Securities and Exchange Commission’s (SEC) special regulations for cryptocurrency custodians. The SEC’s policy is seen as a significant challenge to traditional financial firms seeking to offer cryptocurrency custody services.
Reversing the SEC’s policy would make it easier for traditional banks to service depositories. digital goods for their customers. But Custodia Bank Chief Executive Officer (CEO) Caitlin Long took to the social media platform X on Wednesday to say she doesn’t believe Congress has the votes to overturn Biden’s veto.
Somewhat ironically, a meeting was also scheduled for Wednesday between crypto industry representatives, top Democratic leaders, and White House officials. The meeting was organized by Democratic Rep. Ro Khanna, who represents a California district that includes Silicon Valley.
However, Democrats as a whole have been slow to recognize cryptocurrency advocates as a potential voting bloc, while Republican presidential candidate Donald Trump has been openly engaging with them for several months, offering to ease the regulatory burden placed on the cryptocurrency industry by the SEC under the Biden administration. Republicans have created various protections for cryptocurrencies, such as the right to bitcoin mining and self-custody of cryptocurrencies, part of their official party platform earlier this week.
CFTC Chairman Calls for Legislative Response on Cryptocurrencies
Also on Wednesday, a Senate committee held a hearing on digital commodities oversight, which included witnesses Commodity Futures Trading Commission (CFTC) President Rostin Behnam.
Behnam highlighted the lack of legislative action in his opening remarks, saying, “What has concerned me most throughout the expansion of this digital asset class is that as everyday Americans fall victim to a digital asset scam after another, there remains no comprehensive legislative response. Members of Congress have repeatedly asked me what I am doing to protect their constituents.”
Market observers also followed Federal Reserve Chairman Jerome Powell’s second day of calls. Testimony to Congress Wednesday for a clue as to where interest rate policy might go this year.