All Eyes on Crypto as Market Opens

February 15, 2021 James Heinsman Hedge Fund News

Two weeks after GameStop (NYSE: GME) set the hedge fund sector and the entire finance world on edge with a meteoric spike and equally rapid return to earth in January, all eyes will be on the cryptocurrency sector as Wall Street returns from the President’s Day holiday on Tuesday.

Like GameStop did last month, Dogecoin’s (NASDAQ: DOGE) price has exploded in recent weeks, building from $0.007195 on New Year’s Day to top out at $0.080717 on February 8, a staggering 1021.85% jump. 

Predictably, Doge – which has been described as both a joke and a scam – eased off towards the end of the week, ending trading on Friday at $0.060044. But the second wild ride by a previously minor market player may indicate a shift inside the finance industry – and may also have raised regulatory concerns for lawmakers.

Last week, the Bank of New York MellonCorp (NYSE: BK) announced it would begin holding and trading cryptocurrencies including Doge and Bitcoin (US:BTCUSD), which has also jumped more than 70% since the beginning of the year, as part of its asset-management service.

“Digital assets are becoming part of the mainstream,” Roman Regelman, chief executive of BNY Mellon’s asset-servicing and digital businesses, told the Wall Street Journal.

As the market for cryptocurrencies grows, so does the politics surrounding them. Last week Treasury Secretary Janet Yellin raised an alarm that “misuse” of Bitcoin could  be an effective way to fund terrorism (in the past, Yellin has also said that digital currencies held “promise”), while first-term Senator Cynthia Lummis (RWY),  a holder of Bitcoin, held her state out as a choice destination for cryptocurrency enthusiasts.

“I just don’t want us to mess this up,” the senator told Yahoo!Finance.

bitcoin, cryptocurrencies, Dogecoin,

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