In recent days, the price of Bitcoin closed above USD 31,000. Ether set a new all-time high a month later the main cryptocurrency of the market exceeded USD 20,000.
After recording the first correction in the current bullish cycle, the price of Bitcoin had a new pullback. It came to be above USD 33,000, closing the last week with a drop of 6.7%.
Several events that bear a relationship with the fall of the price of Bitcoin took place recently. Among them are statements by the President of the European Central Bank, Christine Lagarde, and the new US Treasury Secretary, Janet Yellen. Both officials fear that some users may use Bitcoin in money laundering and terrorist financing.
The price of Bitcoin recently retreated to USD 29,200. However, it then rebounded amid new announcements about institutional investments in Bitcoin and other cryptocurrencies.
Institutions Continue to Support Bitcoin
BlackRock is the US investment company with the most assets under its management worldwide. They recently filed with the US Securities and Exchange Commission (SEC) prospects that include Bitcoin futures in two of their funds.
People could also see that Janet Yellen changed her stance on Bitcoin during a hearing before the Finance Committee of the US Congress. She said that these types of assets have the potential to improve the efficiency of the financial system.
Meanwhile, Canadian fund manager 3iQ announced that its Bitcoin fund exceeded 1 billion Canadian dollars (CAD). The company was able to reach that record thanks to the recovery of the pioneering cryptocurrency.
Crypto investment firm Grayscale applied to the Delaware Division of Corporations for the creation of six other cryptocurrency funds. These include crypto assets such as Bitcoin (BTC), Chainlink (LINK), Tezos (XTZ), Decentraland (MANA), and Filecoin (FIL), among others.
Institutional Expectations on Bitcoin
Trading platform eToro recently surveyed bankers, mutual fund managers, market makers, liquidity providers, and custodians. This consultation identifies institutional expectations about greater investment in the market of Bitcoin and other cryptocurrencies.
Respondents hope that regulatory agencies will have a more consistent attitude towards cryptocurrencies. Besides, they consider that the value of the cryptocurrency market should grow more to attract more institutional investors. They expressed that opinion even though the market value of cryptocurrencies crossing the USD 1 billion milestones.
The IMF Tells Countries to Spend
It seems that the macroeconomic environment continues to favor Bitcoin, with the quantitative easing policies of several developed countries. This could lead Bitcoin to become more attractive to investors as a hedge against an increasingly weak US dollar.
The IMF recently confirmed that they favor an expansionary monetary policy. The managing director of this organization, Kristalina Georgieva, said: “Although it is unusual for the IMF, I ask you to spend. Please spend as much as possible, and then spend a little more.”
Ether’s New All-Time High
In 2020, the second cryptocurrency by market capitalization surpassed Bitcoin in terms of annual return. However, it had remained below its all-time high of USD 1,420 since January 2018.
A month after Bitcoin managed to break above the USD 20,000 mark, Ether (ETH) traded at USD 1,435. In that way, it set a new all-time high. Although the new record was temporary, Ether also recorded one of its highest trading volumes at the time. The cryptocurrency on the Ethereum network reached USD 14.5 billion in just 24 hours.
By Alexander Salazar
