Summary
- Bitcoin price is on the rise and there is a corresponding increase in institutional adoption of the cryptocurrency.
- BTC futures approval by the US Securities and Exchange Commission could trigger a further spike in prices.
Bitcoin’s resurgence continued to show strong intent today. BTC price rose by 0.7% over 24 hours to trade at $58,711 at the time of writing. After a sustained upsurge in the past few days, Bitcoin has gained 3.3% in 7 days. Its market capitalization has also been firmly established at $1.1 trillion.
Daring moves into new territory
Cryptocurrencies are on a resurgence and are gaining widespread integration into the mainstream financial systems.
A crypto custodian, Bakkt yesterday launched a mobile app for Android and iOS. The app will enable clients to spend and hold BTC. Additionally, the app will enable users to send digital currencies to other people, accumulate rewards and purchase gift cards that are discounted.
The governor of Texas, Tan Parker, in his recent tweet stated that he is supporting the bill seeking to promote the mainstream adoption of digital currencies. He also added that the adoption of digital currencies will increase if the United States Securities and Exchange Commission consents to the Bitcoin ETF.
Rising institutional adoption
Institutional adoption of BTC has also been on the increase over the past week.
A leading platform for sports memorabilia trading, Goldin Auctions yesterday announced plans to partner with Gemini, a digital currency exchange platform to enable digital currency payments. This will give bidders and consigners the ability to use BTC and ETH for trading on Goldin.
In the biggest purchase of the week, Grayscale added more than $3 billion BTC and altcoins two days ago. The company currently has BTC coins worth nearly $40 billion. The latest addition is a testament to the bullish outlook for BTC prices, considering that Greyscale’s Bitcoin Trust is on a negative premium.
Bitcoin is also increasingly being adopted by institutions as a means of payment.
A music school in Scotland will begin receiving digital currencies as payment for tuition. The Morningside School of Music in Edinburgh stated that it was accepting payment in BTC because it was suggested by some of the students in the school who also work in the Fintech section.
In Venezuela, a TV station is now accepting payment for its subscriptions via Bitcoin. Simple TV announced that the service will be available for millions of its users. Users can make payments using BTC, LTC, and ETH among others. Simple TV has partnered with a Panamanian firm, a buyer in digital currencies to provide the option of paying in crypto-assets.
BTC’s status as an investment asset has elevated it so much so that it has established itself as a legitimate substitute for gold. A well-known business newsletter, Morning Brew has recently substituted gold for BTC.
The most recent issue by the newsletter has already featured BTC. However, the company was quick to point out that the move is not advocacy for BTC, but is meant to increase its relevance to the sector due to the increasing interest in digital currencies.
The anxious wait
Bitcoin’s strong market showing continues to pile pressure on regulators. Investors are keen on cashing in on the crypto-asset and this has necessitated calls for liberalization of financial markets.
Chicago Mercantile Exchange (CME) is preparing to initiate micro futures for BTC. This will enable traders to venture on partial units of the leading digital assets. This exchange hopes to launch futures trading in May, upon approval by regulators.
BTC/USD technical outlook
Bitcoin will find first support at $57,045 and the second support at $57,953. The Relative Strength Index (RSI) is at 60, showing a strong hold by the bulls. This will likely push prices past the second resistance at $59,705 into the $60,000s.
