Bitcoin soars to new seven-month highs

Bitcoin tears through May highs

It has been months since Bitcoin has seen the world above $80,000, but it has finally managed to breach the May highs in early trading today. Financial markets have rediscovered a risk-on frame of mind after being consumed with worry about government bond yields, debt piles and the prospect of a return to tighter policy at the world’s most powerful central bank. Cryptocurrencies are advancing in a group this morning, a move given strength by recent inflows and one likely to attract even more of those vital funds. Perhaps investors are realising that they can live in a world of higher US rates, though falling oil prices certainly help too.

CLARITY’s demise leaves regulatory picture blurred

As was obvious for weeks, US lawmakers managed to fumble the passage of the Clarity Act. And now an unsightly turf war is likely between the SEC and the CFTC, leaving investors stuck in the middle. Having pushed hard to get a clear set of legislative rules in place, the cryptocurrency industry now faces a much more uncertain future, hoping that lawmakers can find a way forward after the mid-terms. This seems unlikely, given how we can expect the next two years to be a bitter partisan fight.

Crypto rally bound to draw fresh attention

The best medicine for the cryptocurrency sector’s malaise has been a renewed rally in bitcoin and others. After the initial August bounce the excitement seemed to be fading, but the push through the May highs will reignite enthusiasm. The timing is ideal too – since its creation, Bitcoin has posted negative returns for August and September on average, but now it moves back into the ten-month positive period.