Bitcoin regained momentum and broke through the $25,000 mark. This is surprising, especially after the new measures by American regulators. They, among others, called on the crypto company Paxos Trust to stop issuing the stablecoin Binance USD.
Investors have warmed to bitcoin more than to altcoins, which the US SEC classifies as a commodity rather than a security. Bitcoin rallied particularly strongly on Thursday (+10%), with its market capitalization approaching $500 billion. The Bitcoin price has been at its highest since August.
Let’s recall that last year, $1.4 trillion in market capitalization “leaked” from the crypto market, and with the fall of the FTX stock market, the prospects were bad. But passions have subsided, buyers have returned, and we may have seen bitcoin bottom on November 9th at $15,700.
The company that could topple the $137 billion market
The US Securities and Exchange Commission may be preparing to act against Paxos, a company that issues a type of cryptocurrency called a stablecoin. The move will have major implications for the $137 billion market.
Stablecoins are cryptocurrencies designed to mirror real assets such as the US dollar.
Real assets, like bonds or cash, usually back these stable currencies. They help people trade different coins quickly and easily without converting them to or from a fiat currency.
BUSD is a coin tied to the dollar, like USDT. It is made by Binance, one of the world’s largest cryptocurrency exchanges.
Paxos was ordered to stop issuing BUSD last week.