The price of bitcoin jumped to more than 25,000 dollars (23,400 euros) on Thursday after soaring 15% in three sessions, the pressure put by American regulators not cutting investors’ appetite for the cryptocurrency. Bitcoin price rose to $25,249, a high since last June, and its first foray above the symbolic 25,000 point threshold since August.
A less gloomy outlook for the global economy is whetting investors’ appetites and benefiting the cryptocurrency market as well as the stock exchanges, with historic records for the Paris and London markets.
Since the start of the year, the price of bitcoin has climbed more than 50%, although it remains almost three times lower than its all-time high, at $68,992 in November 2021. The other big cryptoassets, like ether, are also going up.
However, the news is not necessarily encouraging for the industry, which is still suffering the repercussions of the bankruptcy of the FTX platform at the end of 2022. American regulators have decided to tighten the screws and in particular prohibited the company Paxos from issuing in the name of the Binance trading platform, a cryptocurrency, BUSD, called stable or “stablecoin”.
Towards the disappearance of BUSD
BUSD, supposed to be stable because it is backed by the dollar and US Treasury bonds, will no longer be issued from February 21, and Paxos will only manage the tokens of this “stablecoin” existing for one year. Stablecoins allow users of cryptocurrency exchange platforms to limit conversion costs during their operations.
“The third largest stablecoin has just been given an expiration date of February 2024 and the market seems to have swept away the information,” notes Kaiko analyst Riyad Carey. “The pushback from regulators is fueling some apprehension, but there is clearly” a sense among investors that the worst is behind for the sector since the FTX platform collapsed last November, comments Oanda analyst Craig Erlam .