Why Bitcoin And Ethereum Traded Higher This Week

Cryptocurrencies are continuing to trend higher Friday after Bitcoin (CRYPTO: BTC) broke above the $40,000 level this week and Ethereum (CRYPTO: ETH) continues to move closer to the $3,000 level.

Week In Review: SEC Chief Gary Gensler made positive comments regarding cryptocurrency regulation on CNBC earlier in the week.

Gensler noted that the lack of regulation is not good for the advancement of cryptocurrency technology. 

Following the introduction of a bipartisan infrastructure bill that would regulate reporting requirements for crypto transactions, U.S. Senators Pat Toomey, Ron Wyden and Cynthia Lummis introduced an amendment to the bill Wednesday. 

“Investors failing to pay tax they owe through cryptocurrency is a real problem, and I strongly support third-party reporting by exchanges where cryptocurrency is bought, sold and traded,” Wyden said in a statement.

“Digital assets are here to stay. While much more work needs to be done, this amendment is a responsible step toward fully incorporating digital assets into the U.S. financial sector,” Lummis added.

The major upgrade to the Ethereum network called Ethereum Improvement Protocol 1559, or EIP-1559, went into effect yesterday. 

Reports suggest that approximately $12 million in ether tokens were burned in the first 24 hours. 

In other news, a new cryptocurrency bill that was recently introduced in Ukraine would reportedly allow payments to be made in Bitcoin.

Price Action: At last check Friday, Bitcoin was up 4.80% at $42,873 and Ethereum was up 5.01% at $2,944.

Photo by Die Wirtschaftsnews from Pixabay.