Fasten your seat belts please, Ladies and Gentlemen, because the bitcoin rollercoaster looks set to continue its rapid up-down journey this week.
Fears last week about the implementation of a raft of global regulations pushed the price of Bitcoin below $8,000 for the second time this year – after a high point of almost $20,000 at the end of 2017 – and the news over the weekend that Twitter was going to join Google and Facebook to ban crypto-related adverts sent prices, of course, tumbling once more.
Sky News reported early on Sunday that Twitter’s “new advertising policy will be implemented in two weeks and currently stands to prohibit advertisements for initial coin offerings, token sales, and crypto-currency wallets globally” and this information pushed the price of Bitcoin down 7 percent towards a low of $7,335.57.
But hang on, what’s this. Late on Sunday the Financial Stability Board (FSB), the body that coordinates financial regulation for the G20, announced that crypto-currencies “do not pose risks to global financial stability at this time” and yes, the price of Bitcoin came shooting back up. In late trading on Sunday, Bitcoin gained $700 in less than three hours.
The G20 group of countries is meeting in Buenos Aires today and Tuesday and the FSB Chair Mark Carney, who is also the Bank of England governor, said in a letter to the group’s central bankers and finance ministers that although the crypto sector was evolving rapidly, it remains small and is worth less than 1 percent of global GDP. New regulation is not needed, argued Carney, and existing regulation should be amended with more international co-ordination needed in data monitoring. Carney’s statement was enough to give the crypto markets a rapid boost.
And next week? The launch by the Easter Bunny of a crypto-backed chocolate egg? Surely enough to send the market soaring again.