Bitcoin, Ethereum, and Other Cryptocurrencies Are Rebounding Along With the Stock Market
Bitcoin (BTC-USD) and other leading cryptocurrencies have had a pretty rough 2018 so far. After a rough January, many digital currencies have spent the first week of February in a downward spiral. Thanks to a seemingly never-ending string of bad news items, many cryptocurrencies have lost half their value or more this year.
While it's far too early to call a bottom, Tuesday is shaping up to be the best day for cryptocurrencies in weeks. Bitcoin is up by 7%, and most other leading cryptocurrencies are doing even better. Here's the latest price action and news from the cryptocurrency world.
Today's cryptocurrency prices
Here's a look at the 10 largest cryptocurrencies by market capitalization, and how much each has changed over the past 24 hours.
Smaller cryptocurrencies are rising dramatically as well. In fact, you'd have to look all the way down the list to the 69th largest cryptocurrency before you would find one in the red today.
It's also worth mentioning that Tuesday's cryptocurrency gains are even better than they look in this chart. Bitcoin (BTC-USD) fell as low as $6,033.90 on Tuesday morning, so the current price represents an impressive 25.5% rebound from the lows. Ethereum and Ripple are similar stories, up 32% and 31%, respectively, from the day's low. Most other cryptocurrencies are in the same boat.
Today's action is a similar story to what we're seeing in the stock market today. After a major drop, stocks are rising pretty much across the board on no substantial positive news. A similar situation seems to be playing out here. Investor sentiment seems to have picked up for stocks and digital currencies, with bargain-seeking investors rushing in to take advantage of lower prices.
Icahn's warning
The list of big-time investors warning people about cryptocurrencies continues to grow. Billionaire Carl Icahn told CNBC today that bitcoin (BTC-USD) and other cryptocurrencies are "ridiculous."
"Maybe I'm too old for them, but I wouldn't touch that stuff," Icahn said. He admitted that he didn't understand them well but questioned how they can be regulated and pointed out the abundance of cryptocurrency and ICO-related scandals.
Icahn's warning comes on the heels of JPMorgan Chase CEO Jamie Dimon's now famous comment that bitcoin is a "fraud," and Warren Buffett's perspective that the cryptocurrency craze won't end well.
The Senate is holding bitcoin hearings today
Interestingly, while the cryptocurrency market rockets higher, the U.S. Senate is holding hearings on cryptocurrency regulations today. The goal of the hearings is to eventually figure out where bitcoin and other cryptocurrencies will stand in the regulatory world in the United States.
SEC Chairman Jay Clayton testified that "there are many problems" with the way crypto markets operate, and Commodity Futures Trading Commission Chairman Chris Giancarlo testified that more regulation and cooperation between federal agencies is necessary to protect investors.
While this sounds scary on the surface, it's worth pointing out that a major target of potential regulations is the initial coin offering, or ICO, market, rather than established cryptocurrencies like bitcoin and Ethereum. And lack of regulation has been cited as a reason for rejecting cryptocurrency ETFs, so if cryptocurrencies were to fall under the SEC's regulatory authority, it could open the door for bitcoin and other cryptocurrency ETFs.
Bitcoin is overhyped: 10 better buys for you nowWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and investing directly in Bitcoin was noticeably absent from their recommendations! That's right -- they think these 10 stocks are better buys.
{% render_component 'sa-returns-as-of' type='rg'%}
Matthew Frankel has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool has a disclosure policy.