Cryptocurrencies edged higher for a second day on Wednesday, mirroring wider global markets, on tentative hopes a conflict in Ukraine can be avoided. Bitcoin rose almost 1% to around $44,000 – well above the crucial $40,000 – while its closest rival by market value, Ethereum, gained just over three percent to just over $3,000. Both digital tokens are about 35% below all-time highs seen in November, as rising inflation, global interest rate hikes and the escalating tensions between Russia and the US left previously bullish speculators seeking safer havens.
The US arm of crypto exchange Binance is under investigation from the SEC according to reports. The SEC is looking into the relationship between Binance CEO Changpeng Zhao and trading firms Sigma Chain and Merit Peak, the Cointelegraph reported, citing an article from the Wall Street Journal. The federal regulator reportedly requested information from the crypto exchange on the two companies and is investigating how it may have disclosed its potential links to the market makers to users. The trading firms act as market makers, buying and selling crypto on Binance.US, which helps to reduce volatility.