Bitcoin Maintains Upside Momentum as Price Nears Record High
Key Takeaways:
- Bitcoin keeps stable around weekly highs
- Investors remain optimistic there is more to the rally
- Strong interest on the rise from the banking sector
Bitcoin, cryptocurrency’s largest asset has been reaching higher ground this week, as crypto investors turned the price around from recent lows. On Thursday, a single Bitcoin is worth just below €48,000. The current rally in the apex digital asset was underpinned by renewed buying optimism as market participants supported Bitcoin from its latest low at €35,900 reached on Feb 28th. Since then, a quick recovery has brought the price back near-record levels in a 30% move to the upside.
The price of Bitcoin reached an all-time high above €52,000 on Feb 21st, followed by a sharp decline. The downward move, however, turned out to be unsustainable as crypto enthusiasts became increasingly optimistic to buy the dip.
Bitcoin today is trading relatively unchanged, about 2% to the upside for the last 24 hours. The asset’s market capitalization, or the total market value of Bitcoin in Euro, currently hovers near the €1 trillion mark.
The number one cryptocurrency this year has enjoyed substantial support from financial institutions, professional investors, and, of course, the retail trading community. Bitcoin’s price has been on an upward swing for the last year, boosted by support from companies like PayPal, Tesla, and MicroStrategy. Additionally, some of the largest investment banks have expressed interest in offering Bitcoin to their clients. Last month, Goldman Sachs announced its plans to re-open the cryptocurrency trading desk as institutional demand to own Bitcoin has surged to record levels. In a similar fashion, JPMorgan, another large investment banking firm, pledged to launch “Bitcoin exposure basket” as a way to offer clients access to bitcoin through a structured note tied to a basket of stocks that own bitcoin. Some of the publicly traded companies that may be present in this basket include MicroStrategy, Square, and Riot Blockchain.
Professional investors have also been drawn in by the recent stratospheric rise of bitcoin. A growing number of hedge funds say they are in preparation to include exposure to cryptocurrencies. Stanley Druckenmiller and Paul Tudor Jones, two legendary hedge fund managers, already stated they have invested in bitcoin.
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