Bitcoin traded higher on Wednesday shrugging off concerns over the fallout from the recent Chinese crackdown on individuals and businesses who use initial coin offerings (ICOs) to raise funds.
On the U.S.-based Bitfinex exchange, bitcoin rose to $4,586.6, up $211.6 or 4.84%, as it seeks to return to its recent peak of $4,911.80. At current prices Bitcoin boasts a market cap of $76.17 billion.
Bitcoin continued to pare its recent losses, following the People’s Bank of China decision to ban individuals and businesses from raising funds through initial coin offerings (ICOs).
The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed.
An initial coin offering ICO is a means fundraising via the use of cryptocurrency in which a company attracts investors by releasing its own digital currency which can appreciate in value if the business is successful.
The Chinese government’s latest measures to curb the activity of initial coin offerings are seen as a threat to the strong demand currently underpinning cryptocurrency growth.
Ethereum, in particular, is widely believed to vulnerable to a dip in demand following these latest regulatory measures, as ICO issuers often request payment in ether – a currency transacted through the Ethereum network.
Investors, however, appeared to shrug off these concerns as the total market capitalization for cryptocurrencies continued to gather momentum, rising to nearly $163 billion.
Ethereum traded 6.53% to $336.68 while Bitcoin Cash rose $103.83, or 19.05%, to $649.