The current rally began earlier this month, when computer giant announced a joint venture with fintech start-up Stronghold to launch a cryptocurrency called Stronghold USD.
Market still very volatile
IBM’s stamp of approval for the cyber-cash revolution saw traders piling into Bitcoin and rival cryptocurrencies as it seemed that the sector was coming of age.
Today, rivals saw their prices rise in the updraft from Bitcoin’s rise, although to nowhere near the same dollar values. traded at $465.44, at $84.76 and at $0.4541.
The IBM move cannot provide the rationale for the whole of the cryptocurrency rally. Writing in Forbes magazine, contributor suggests alternative explanations including the requirement of knowledge of cryptocurrencies for people studying for accountancy qualifications and growing interest among banks about getting involved in the sector.
However, as the market continued to rally, the European Parliament’s monetary and economic affairs committee warned that holders of Bitcoin and its rivals could be severely affected if commercial banks and even central banks became involved in cryptocurrencies.