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Cryptocurrencies gain for a second day, following US stocks higher

Cryptocurrencies moved higher for a second consecutive day, mirroring gains in US stocks and the tech-heavy Nasdaq.  Bitcoin, the largest coin by market cap, gained 1.81% to US$41,446, its highest value in a week. Ethereum climbed 1.99% to US$3,102. The coin is trading at its highest level in six days. The crypto market mirrored the movement of the tech-heavy Nasdaq, with which it has become increasingly aligned.  However, the bounce may be short-lived as cryptos face a fresh threat of tighter regulation following a call from the International Monetary Fund (IMF) for greater regulation of alt-coins. According Naeem Aslam, a market analyst at AvaTrade, the IMF’s Global Financial Stability Report would bring “more regulatory spotlight” back on the crypto world. The IMF, which monitors global economic developments to identify any potential risks, called on global policymakers to better regulate and control crypto in response to how the tokens are being used during the war in Ukraine. Aslam argues that the calls from the IMF’s report are specific to “countries using crypto to avoid sanctions.” “Cryptocurrencies are being used to sell oil to some extent by countries like Iran and Russia,” Aslam said. “There are also concerns that these countries are using oil and gas resources to power crypto mining which is another source of revenue, bypassing all sanctions.” In some of the altcoins, Solana climbed 6.25% to US$108.09, Terra gained 6.81% to US%95 and Cardano gained 1.85% to US$0.9478.