ItBitcoin achieved a record-high for nine months two days ago. It has kept that level up until now due to the ongoing US financial crisis, causing cryptocurrency markets to ascend. Cointelegraph and TradingView data indicate that the BTC/USD exchange rate on Bitstamp has reached a peak of $28,190. Afterward, the exchange rate entered into a consolidation period.
At the time of writing, it has rounded $28,000, with continued volatility following the Wall Street opening.
The Federal Reserve’s overnight balance sheet data revealed an injection of almost $300 billion into the economy. This triggered new expansion. Commentators quickly labeled the event as a restart of quantitative easing (QE), effectively reversing the Fed’s quantitative easing (QE) policy that had led to months of liquidity removal.
Scott Melker, famously known as “The Wolf of All Streets” due to his work as a trader, analyst, and podcast host, noted that the reports suggest something other than quantitative easing, although the evidence speaks for itself. In just one week, roughly half of the decrease stemming from a year-long period of quantitative tightening had been reversed.
Bitcoin, therefore, pursued the powerful performance of US stocks the day before.
For market broadcasters, there was a view that the uptrend could resume despite stocks building sideways action on the day.
Hong Kong desires to turn into a crypto hub
Despite the volatility, Hong Kong strives to become a virtual property hub.
The municipality’s strong motivation for digital assets stands in clear opposition to mainland China, where Beijing has forbidden trading and very strictly opposed any crypto-related pursuits.
Hong Kong plans to introduce new rules in June that require licensing of crypto trading platforms by the Securities and Exchange Commission. The regulator has already launched consultations on its proposal to regulate platforms for trading virtual assets.
Companies who contacted CNBC expressed the desire that the central government may observe the progress of crypto projects in Hong Kong.
