The main cryptocurrency on the market recently exceeded USD 52,000 and seems to be moving towards USD 55,000. Axa Investment Managers says that Bitcoin has price volatility and liquidity problems, but they view blockchain technology positively.
It seems that the main cryptocurrency on the market recently started a new bullish cycle. Bitcoin’s price crossed the USD 52,000 mark after having remained below USD 50,000.
Three cryptocurrency market and economic events accompanied the surge that seems to be propelling Bitcoin towards USD 55,000.
The US Senate approved stimulus checks, which coincided with the recent increase in the price of Bitcoin. The government agency agreed to the anticipated USD 1.9 trillion stimulus bill.
Bitcoin purchase orders also accompanied this increase since large Bitcoin buyers do not hesitate to invest. High-volume purchases of Bitcoin seem more frequent than ever in the cryptocurrency’s history.
As if that were not enough, whales bought Bitcoin before the rise in the price of the crypto asset. According to other data, whale movements seem to have been behind the recent surge in the price of Bitcoin.
US Government Agency to Auction 0.7501 BTC
The US General Services Administration, which seeks to control and support the basic functioning of federal agencies, is auctioning 0.7501 BTC. The agency could sell that amount, whose value is less than 1 Bitcoin but more than USD 43,360, at an auction.
They are selling not just Bitcoin but also impounded cars, a heavy-duty tractor, and a 12,000-gallon-storage container, among others. No one yet knows how the government obtained that Bitcoin.
This is not the first time that the US government has sold Bitcoin or the largest sale that they have made. In 2014, they auctioned more than 30,000 BTC at a total price of USD 19 million. They had seized the stash from the now-defunct Silk Road darknet marketplace.
Venture capitalist Tim Draper acquired it for a price that they did not disclose. The Bitcoin loot that now belongs to Draper is worth more than USD 1.6 billion.
An Investment Firm Criticizes Bitcoin but Is Positive about Blockchain
Investment firm Axa Investment Managers has expressed doubts and criticism about Bitcoin. They are taking into account Bitcoin’s price volatility, liquidity problems, and difficulties in assessing intrinsic value. Besides, they mentioned the high consumption of electricity that mining the cryptocurrency requires.
The investment manager of the company Vincent Vinatier spoke of Bitcoin as a speculative asset that could be worth “USD 10 or USD 10 million”. He said that “the recent performance of Bitcoin is driving great public interest and its adoption by some industrial players is speculative.”
The firm clarified that they have “a more positive view on blockchain technology, given that it has several applications.”
Norwegian Energy Provider Creates New Bitcoin-Focused Company
Aker Solutions, a Norwegian energy service provider, is creating a new business focused on Bitcoin. Its CEO Kjell Rokke recently spoke of the importance of the digital asset in a letter to shareholders.
The company announced the creation of Seetee, a cryptocurrency-focused investment firm looking to get involved in Bitcoin. The spin-off company has already received USD 59 million, equivalent to NOK 500 million.
According to Aker, that amount of money will increase significantly over time as they gain experience and identify exciting opportunities. They explain that Seetee seeks to establish mining operations that transfer surplus electricity to various assets.
By Alexander Salazar
