Cryptocurrencies are rising despite the World Bank president calling the market a Ponzi scheme

Markets Insider

  • Major cryptocurrencies are all rising on Thursday but bitcoin is still down 20% over the last 7 days.
  • World Bank Group President Jim Yong Kim compared cryptocurrencies to Ponzi schemes.

LONDON – Cryptocurrencies are rallying strongly on Thursday.

After getting hosed earlier in the week, all major cryptocurrencies are solidly in the green by Thursday lunchtime in Europe. Here’s how the scoreboard looks at 12.15 p.m. GMT (7.15 a.m. ET):

Mati Greenspan, an analyst with trading platform eToro, said in an email: “The bounce in the crypto markets continued. Thanks in large part to a softer than expected stance from US regulators.”

Regulators said they are taking a “do no harm approach” to the crypto market during a Senate hearing on Wednesday.

Despite the rally, bitcoin is still down around 20% over the last 7 days, as the chart at the top illustrates.

The London Block Exchange, a UK bitcoin startup, writes in its daily market report on Thursday: “As we approach the weekend – traditionally a period with less trading volume and therefore more prone to wild movements, with a tendency to dip – we continue to recommend closely watching bitcoin’s price to gauge the direction of the crypto markets.

“While today’s early hours have been positive, with bitcoin rising 8% and leaving the past day’s bear channel, it’s impossible to predict the short-term direction.”

The rally in the market comes despite more skepticism from the world of traditional finance. World Bank Group President Jim Yong Kim compared cryptocurrencies to Ponzi schemes at an event in Washington on Wednesday night.

Bloomberg reports that Kim said: “In terms of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes.”

You can get live cryptocurrency prices on Markets Insider.