Bitcoin climbs to a 1-week high, hitting $38,000 as the cryptocurrency shrugs off renewed calls for tighter regulation

The bitcoin price has surged 800% in the last year

Dado Ruvic/Reuters

The price of bitcoin climbed to a one-week high Thursday, as the cryptocurrency shrugged off renewed calls for tighter regulation by both US politicians and foreign regulatory authorities.

Bitcoin on Thursday extended its two-day gain to 20%, hitting $38,211 at 6:34 a.m. ET. It was trading at $37,036 as of 11:15 a.m. ET.

The price of the world's most popular cryptocurrency is now back to January levels. Recent data from Chainalysis reveal that investors appear to be holding, even if they are not buying much. This, the blockchain analysis company said, suggests that conviction in bitcoin from earlier in the year continues.

However, for Jeffrey Halley, senior market analyst at Oanda, his technical chart remains bearish. A daily close above $38,000 though he said will invalidate the bearish symmetrical triangle.

Bitcoin has been struggling the past weeks, losing nearly 50% of its value since hitting an all-time high of nearly $65,000 in April. Increasing calls for more regulation of the asset have been a headwind to its recovery, but investors seem to be sidestepping those concerns for now.

The Basel Committee on Banking Supervision on Thursday said bitcoin's capital requirements for banks should be heavier than for holding stocks and bonds. The committee, which is the most powerful group of central bank representatives when it comes to setting banking standards, said banks should have to hold $1 in capital for every $1 worth of bitcoin they hold.

Meanwhile, a day earlier on Wednesday, Senator Elizabeth Warren urged policymakers during a hearing focused on digital currencies to address the rapidly evolving space.

"Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis," Warren said at a congressional hearing. "The threats posted by crypto show that Congress and federal regulators can't continue to hide out, hoping that crypto will go away. It won't. It's time to confront these issues head-on."

Bitcoin saw a boost earlier in the week when the congress of El Salvador voted in favor of making bitcoin legal tender in the country. Once the law passes through the legislative processes, bitcoin will have the same status as the US dollar, the country's current national currency.

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