Crypto Market Bounces Back

After a tough week of bearish sentiment, Bitcoin and co. made ground after the FSB’s conclusion that cryptocurrencies do not pose a systemic risk to the world economy.

Yesterday’s unexpected move from Mark Carney, chairman of the Financial Stability Board, in a letter to G20 finance ministers stated that cryptocurrencies may one day pose a risk to the world economy if they remain in their current form without improvements to conduct, market integrity and cyber resilience, whilst maintaining the unprecedented growth of 2017 into future years.

The news took the market by surprise, with Carney having advocated for greater regulatory scrutiny on cryptocurrencies earlier this month in his role as governor of the Bank of England.

It was noted that even at the 2017 peak, the crypto-market represented less than 1% of global economic output. Furthermore, they are not used in a transactional format thus limiting their links to the broader financial system.

The market has since taken heart from these comments, with Bitcoin up 14.5% in the last 24hrs at time of writing. Many other top 100 cryptos are also making double digit gains.