07.02.201821:16:00UTC+00Bitcoin Posts Sharp Gains after Recent Slump

Bitcoin rallied along with solid gains in other cryptocurrencies on Wednesday.

According to CoinDesk, the biggest digital currency based on market capitalization traded 9.5 percent higher above $8, 400. The rally marked an increase of over $2, 000 in just over a day.

The gains came after a Senate Banking Committee hearing on Tuesday on cryptocurrencies in with the chairmen of the Commodity Futures Trading Commission and the Securities and Exchange Commission underlined consumer protection without a heavy-handed prohibition on the development of virtual assets. The agency heads also said Treasury Secretary Mnuchin is gathering several federal agencies to draft out the regulation on the fast-expanding industry.

Before the hearing, bitcoin slid below $6, 000 to $5, 947.40, its lowest level since November 13 amid a slump in U.S. stocks. The S&P 500 edged up late Tuesday to end 1.7 percent up, but stock index futures indicated a lower open on Wednesday.

Other cryptocurrencies traded up. Ethereum advanced 5.6 percent to $838, ripple climbed 2.3 percent and bitcoin cash rose almost 4.8 percent, according to COinMarketCap.

On a 24-hour basis, the biggest cryptocurrencies by market cap posted double-digit gains. Bitcoin continues to be almost 17 percent lower for the month and down 39 percent down for 2018 so far.