Bulls Returning: Bitcoin with the Market Upwards Following Letter by the Bank of England
A very appreciated and welcomed week-start with Bitcoin [#1 by market capitalization] recovering over $1,000 in value against the US Dollar in just a couple of days. The most impacting factor that hoisted the overall confidence in the community and trading area is the letter by Governor of the Bank of England and Head of the Financial Stability Board [FSB] to the G20 countries – Mark Carney. In the statement he went against various countries who issued negative opinions and releases, adding that cryptocurrencies do not showcase any risk to the economy.
One of the strategic issues related to economy that will be a subject of discussion during the meeting to be held in Argentina by the G20 will be cryptocurrencies, keeping in mind their rapid rise and development recently with their impact in general.
The statement sent by the Governor is of great importance as it would reflect a positive point of view for digital currencies as many times they were labelled threats and risk-posing:
“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. Even at their recent peak, their combined global market value was less than 1% of global GDP.
In comparison, just before the global financial crisis, the notional value of credit default swaps was 100% of global GDP. Their small size, and the fact that they are not substitutes for currency and with very limited use for real economy and financial transactions, has meant the linkages to the rest of the financial system are limited.”
Strong support in a critical time for the cryptocurrency market as many financial and various institutions did state-out that within their plans of activity, the prohibiting of crypto-advancement could be scheduled.
Since our first report of the confidence-giving letter, very positive energy has been generated around the market in general with almost all altcoins following the leader Bitcoin and reversing the recent losses.
Time will tell what decision will be taken at the event, however the report sent by such a prestigious institution as the Bank of England gives us the opportunity to keep an optimistic view on the crypto-future.