Bitcoin price fell back below the $ 30,000 level after hitting lows and highs of $ 29,298 and $ 31,919.70, respectively, in the past 24 hours. The world’s oldest and largest cryptocurrency reduced some of its losses, trading at $ 31,166 around 1:00 p.m. EST on Thursday, down 1.88%. This is evident from data available with the WazirX crypto exchange.
The second largest cryptocurrency by market capitalization, Ethereum, was also 1.74% lower at USD 1,283.79. Other key crypto assets like Ripple and Tether were in the red at 2.71% and 0.08%, respectively. However, Stern was marginally in the green.
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“We saw the Bitcoin price drop to the $ 30,000 level and interestingly, traders are very optimistic. Additionally, in the past 30 days, nearly 270,000 bitcoins have switched to people who want to hold on for an extended period of time. This has also depleted liquidity. We also saw that the largest Swiss bank, UBS, published guidelines for investing in Bitcoin. These are early signs of banks entering the crypto market. We saw that 2020 brought institutional investors into cryptography, and I’m optimistic that 2021 and 2022 will bring banks into it, “said Nischal Shetty, CEO of WazirX.
Blackrock, the world’s largest asset manager with $ 7.81 trillion in assets under management, recently approved two of its funds to invest in Bitcoin futures, while US banking major Goldman Sachs is also considering entering the crypto market.
In a recent report by the US-based ARK Investment Management LLC, the Bitcoin market and investors appear to be maturing. “Bitcoin’s realized capitalization, a measure of an owner’s cost base, has reached an all-time high. A growing cost base suggests that early investors are taking profits while newer investors build positions and create higher levels of price support, “said the AMC, which has approximately $ 34.5 billion under assets.
The fund house in its report titled “Big Ideas 2021” said that Bitcoin is apparently gaining more trust and some companies are viewing it as cash on their balance sheets. “If all S&P 500 companies were to dedicate 1% of their cash to Bitcoin, ARK estimates that the price would increase by about $ 40,000,” he added. This would bring the Bitcoin price to over $ 70,000.
According to ARK Invest, around 60% of Bitcoin supply had not moved in more than a year by November 2020. This is evidence of the longer term direction of the market and a stronger conviction owner base.
The fund house also estimates that Bitcoin’s market capitalization could be $ 1 to 5 trillion in the next five to ten years.
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