The bullish movement in bitcoin has taken the crypto to $55,000. The positive bullishness around bitcoin was increased by the news that the investment firm created by billionaire George Soros owns bitcoin.
The fund owns “some coins…but not a bunch,” Dawn Fitzpatrick, CEO of Soros Fund Management, said to Bloomberg.
“Bitcoin is no longer an alternative investment,” Fitzpatrick said. “I am not sure bitcoin is seen only as an inflation hedge. It has crossed the chasm to go mainstream,” he said.
Earlier, the firm also reported it liquidated a $5 billion 2020 investment to use the money in cryptocurrency, with a special interest in the DeFi sector.
This Thursday, bitcoin reach a high of $55,735.52. At the time of this writing, it was selling for almost $54,000. Ytd, bitcoin is higher by over 85%.
The latest price increase has moved bitcoin’s cap to $1 trillion, which is over the total value of Facebook.
Institutional involvement into bitcoin was also one of the main drivers that led to bitcoin’s move to all-time highs of almost $65,000 this spring.
U.S. Bancorp also announced this week that it was giving new cryptocurrency services for large institutional investors.
“Investor interest in crypto and demand from our clients have gone up strongly over the past few years,” said Gunjan Kedia, vice-chair of United States Bank Wealth Management and Investment Services, in a news release. “Our institutional and fund custody clients have hastened their plans to give cryptocurrency.”
On top of this, comments from Fed Chair Jerome Powell and United States SEC Commission Chair Gary Gensler that there were no plans to restrict or block bitcoin trading is also helping sentiments.
Powell said to the House Financial Services Committee last week that the Fed had “no intention to ban” cryptos.
Meanwhile, Gensler told the same committee this week that the SEC is not planning to ban crypto either.
Any bans “would be up to Congress,” he stated. “Our approach is quite different. It is a matter of how do we get this field inside the investor consumer protection that we have and work with regulators to guarantee that the Treasury dept. can deal with money-laundering and tax compliance? And then the financial stability problems that stable coins might cause as well,” Gensler said.
In a report published this week, Bank of America, a top bank in the United States said that bitcoin and the crypto has “become too large to ignore.”
Author: Blake Ambrose