Bitcoin Flat Amid Range Trading as Facebook Hogs Spotlight
Investing.com — Bitcoin traded in a tight range Thursday, but managed to hold above the $9,000 level as traders continued to debate the impact of Facebook’s upcoming foray into cryptocurrency.
Bitcoin rose slightly to $9,108.4.
As the regulatory spotlight heats up on Facebook’s (NASDAQ:) new crypto, traders continue to mull whether the social media’s presence in the crypto market will spur a wider adoption of other cryptos or cannibalize growth as regulators dig in their heels.
Lawmakers in the U.S. and Europe have pushed back against Facebook’s plan to launch a cryptocurrency, dubbed Libra, to support a worldwide payments systems, citing the social media company’s checkred past on privacy concerns.
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,” said Rep. Maxine Waters, D-Calif., chairman of the House Financial Services Committee.
The increase scrutiny comes at a time when regulators have preferred to play the waiting game when it comes to expanding the reach of cryptos to institutional investors.
In April and again in May, the U.S. Securities and Exchange Commission (SEC) delayed its decision on whether to change the Securities Act to allow bitcoin exchange-traded funds.
The launch of a bitcoin ETF has long been touted as a game-changer that could fuel a wave of new institutional funds into the market, likely triggering a surge in the popular crypto.
Still, Facebook’s Libra project will prove more boon than bane, as it validates the mainstream interest in cryptocurrencies and will likely become one of the dominant stablecoins, according to Fundstrat Global Advisors Co-Founder Tom Lee.
Other cryptos were mostly higher. rose 1.03% to $0.4313, added 0.93% to $267.44 and gained 3.18% to $138.96.
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