Following the Easter weekend, the cryptocurrency market has seen a massive week of institutional adoption. From news of State Street building a new crypto trading platform for banks to Chinese tech firm Meitu allocating $10 million to Bitcoin — the rate of crypto adoption doesn’t seem to be slowing down.
As Fidelity’s head of digital asset, Tom Jessop says, Bitcoin adoption has now reached a “tipping point.” The pioneer digital currency has solidified its position with over $1 trillion in market cap for a whole week.
Here is a recap of some of the biggest events that happened this week in the crypto space.
Bitcoin supply scooped up by two listed firms again
Nasdaq-listed firm MicroStrategy purchased another $15 million in Bitcoin, taking its total holdings to 91,579 BTC. MicroStrategy’s shares have also risen in tandem with Bitcoin.
Hong Kong-listed firm Meitu announced a new investment of $10 million in Bitcoin, completing its Cryptocurrency Investment Plan of allocating $100 million in Bitcoin and Ether.
Grayscale has revealed that its ultimate goal is to convert its Bitcoin trust into a BTC ETF in the future. The company has been in talks with the SEC and is committed to converting GBTC to a Bitcoin ETF as its fund’s dominance declines.
JPMorgan Bitcoin price prediction at $130,000, Bloomberg at $400,000
While Bitcoin’s three-month realized volatility has fallen to 86%, JPMorgan sees this drop as a green light for many institutional investors to enter the crypto space. Goldman Sachs and Morgan Stanley have announced that they will be offering Bitcoin-related products to their clients. JPMorgan predicts that other large institutions will join in.
Money has been flowing into Bitcoin funds at the expense of gold. According to JPMorgan, to match the total private sector investment in precious metal gold, Bitcoin would need to reach the price of $130,000.
Bloomberg predicts that Bitcoin could rally to $400,000 this year. Based on BTC’s performance in 2013 and 2017, Bloomberg analysts believe that Bitcoin could reach as high as $400,000 in 2021.
State Street has recently revealed its intention to build an institutional-grade crypto trading platform and could potentially start trading crypto in mid-2021. As Bitcoin continues to see further adoption, its price is expected to explode higher.
1INCH, ENJ, NKN, and OGN record new ATHs with Coinbase listing
Coinbase is expected to go public next week on April 14, by direct listing on the Nasdaq. While all eyes are on the major crypto exchange, Coinbase announced the listing of 1inch (1INCH), Enjin Coin (ENJ), NKN (NKN), and Original Token (OGN) on its exchange.
These tokens will be available for trading starting on April 9, if there is enough liquidity, according to Coinbase.
Since the announcement, the 1INCH price has soared, making a new all-time high at $6.50 on April 8. The ENJ price also made an all-time high, climbing to $3.40 in the early hours of the European trading time on April 9. NKN also set a new record high, reaching $1.15 at around the same time. OGN, as well, set a record high at $3.35 on April 8, following the listing announcement.
Coinbase also released its Q1 earnings report, revealing that it has reached a total revenue of $1.8 billion, up from $190 million in Q1 2020. Coinbase expects further growth down the line in 2021, after its listing on the Nasdaq.
XRP soars to $1 as Ripple sees small victory in SEC case
In case you haven’t been following, Ripple Labs, the company behind the XRP token, and its executives were sued by the SEC last year in a $1.3 billion lawsuit. The securities regulator alleged that the blockchain company and its executives, Chris Larsen and Brad Garlinghouse, illegally sold XRP as securities.
Previously, a judge on the case stated that to her understanding, XRP had utility, and in another hearing, Ripple won access to the SEC’s documents on Bitcoin and Ethereum. This is a tremendous move for Ripple, as the company can now try to find evidence that the SEC has mentioned that XRP is similar to BTC and ETH.
The XRP price has soared to above $1 earlier this week, for the first time since 2017. XRP has been trading steadily above $0.90 after Ripple’s small win this week.
Volatility remains high even in a bull market
While the crypto market is in a bull market, price volatility continues to remain high. While institutions are now seeing the opportunities the crypto market offers, retail investors are also following these giants’ footsteps.
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