Bitcoin Sets a New Record $37,500 – Higher than Dot-com

Bitcoin was very high at $38,000 on Thursday. The Basel Committee said banks can hold cryptocurrencies like Bitcoin.

Bitcoin Sets a New Record $37,500 - Higher than Dot-com

  • The top cryptocurrency has hit a high of $38,461 during the European hours. It is up by more than $37,500.
  • The Basel Committee on Banking Supervision, which sets international banking standards, recommended stricter requirements for banks that hold bitcoin than stocks and bonds.
  • The committee said that they propose a risk weight of 1,250% for bitcoin, ether, and all other cryptocurrencies. They also said they excluded stablecoins that are fully backed by reserves.
  • A bank would have to hold the same amount of money as the face value of the bitcoin.
  • If you have an exposure of $100 and risk-weighted assets are $1250, then the minimum capital requirement is also $100.
  • While Basel has categorized bitcoin as a high-risk asset, bitcoin’s reaction suggests the market was likely expecting worse.
  • As cryptocurrencies begin to make their way into the traditional financial ecosystem, it is only normal to expect various regulatory bodies to begin to set and then also try to coordinate regulatory initiatives to protect savers and investors,” Denis Vinokourov, head of research at Synergia Capital said.
  • “Risk is over-regulation, but equally lack of regulation will also prevent further adoption en masse. Basel’s proposal to split assets into groups makes logical sense given the different volatility and risk parameters,” Vinokourov added.
  • The recommendation comes as regulators across the globe are stepping up plans to regulate the still-nascent market.
  • On Wednesday, China stepped up its crackdown on bitcoin, asking miners based in Qinghai province to shut down operations.

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