Bitcoin spikes and holds above 9000 after G-20 Summit shows no desire for crypto oversight

Bitcoin is rallying after the Group of 20 nations steered clear of calling for a coordinated clampdown on the cryptocurrency market

Marcus Zallman
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The largest digital currency jumped as much as 5.5 percent to $8,889 after hovering between 8,400 and 8,600 for the past day. Bitcoin is clawing its way back from a drop below $9,000 to a one-month low on Monday.

The cryptocurrency market cap swelled by $45 billion, with virtually every top-tier cryptocurrency experiencing a double-digit percentage advance against the US dollar. The market ebbed from its intraday high leading into Tuesday morning, but it is still valued at $326 billion

While the G-20 highlighted the rising risk of cryptocurrencies, traders are relieved the ministers didn’t call for tighter regulation. Investor concern about a coordinated clampdown had grown after the ministers said they would discuss a common approach to cryptocurrencies at their meeting in Buenos Aires on Monday and Tuesday.

Bitcoin is still down more than 50 percent from an all-time high of almost $20,000 in December as the rest of the digital coin market slumps on concern tightening regulation globally will dampen trading and adoption.

The Ethereum price, meanwhile, fared even worse, rising less than one percent for the day to a present value of $531. Ethereum now has a $52.6 billion market cap, providing the second-largest cryptocurrency with a market share of just under 16 percent.

The G-20 communique said that digital coins are assets, which “lack the key attributes of sovereign currencies," and that “at some point they could have financial stability implications.” The G-20 set a July deadline to decide on cryptocurrency steps, without being more specific on what that meant.