Investing.com – Bitcoin added to gains Wednesday as investors continued to return to the market for the second straight day following the popular digital currency’s recent slump to November lows.
The total cryptocurrency market cap rose to $385 billion, up nearly $20 billion from Tuesday, after snapping three straight days of declines in the previous day. Yet, it remains to be seen whether this a temporary lift or the start of trend as the total cryptomarket cap remains well below its early January peak of roughly $829 billion.
The rebound in bitcoin comes as investors mulled over reports that someone hacked China’s central bank to send an e-mail to US media outlets claiming that the Hong Kong Monetary Authority (HKMA) and People’s Bank of China (PBOC) were poised to introduce new measures to crackdown on Bitcoin trading.
South China Morning Post quoted a section of the email: “[to extend the crackdown to] all virtual currency services and activities of both individuals and business including market makers, mining operators, trading platforms, and wallets.”
Both the Hong Kong Monetary Authority (HKMA) and People’s Bank of China (PBOC) denied any such event taking place. The fake e-mail was distributed in an attempt to manipulate prices and cause widespread fear and uncertainty among investors.
That does little to sway the “fraud” label that bitcoin detractors often cite and comes amid ongoing regulatory jitters, which continued to weigh on overall sentiment as US regulators stepped up efforts to increase oversight of virtual currency like bitcoin on Tuesday.
“We may be back with our friends from Treasury and the Fed to ask for additional legislation,” SEC Chairman Jay Clayton said Tuesday, when asked whether Congress needed to act on virtual currencies.
Bitcoin rose 7.83% to $8,179, while Ethereum, the second largest cryptocurrency by market cap, rose 5.61% to $822.90.
Ripple XRP, meanwhile, rose 3.95% to $0.764.