Bitcoin and Ethereum both showed signs of life despite two of the largest crypto exchanges, Binance and Coinbase, being charged by the SEC over the last couple of days.
The largest coin by market cap rallied 3.78% to US$26,777, while Ethereum added 3.3% to US$1,875.
“We saw tremendous strength coming back for the bitcoin price yesterday despite regulatory pressure,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.
Aslam points to the fact that investors expected the latest bad news to have occurred for some time and that while fines will be paid, things will return to normal.
“This is exactly what we experienced yesterday, initially, there was a bit of a kneejerk reaction in the market, but eventually things recovered, and sentiment improved,” he said.
Traders need to be aware that, at least according to Aslam, Bitcoin is “safe and untouchable by the SEC.”
Bitcoin, and cryptocurrencies in general, are viewed as a commodity rather than a security by the SEC.
“Traders and investors who believe in Bitcoin have nothing to worry about; industry players will evolve and adapt according to the law, which they should have done in the first place," he said.
Among some of the altcoins, XRP was up 4% to US$0.5287, Dogecoin was up 4.3% to US$0.06954 and Litecoin was up 3.1% to US$90.27.