Summary
- The price of BTC has surpassed the $60,000 mark but not steadied above that point.
- Institutions are likely to bow to pressure and increasingly adopt BTC.
- BTC is likely to be accepted in jurisdictions previously opposed to it.
Bitcoin set new record highs, going on to break the $60,000 mark, to hit $61,653 before slipping back to sub-$60,000 levels at press time. This came after successive days in the past week where the $58,000 resistance level proved a hard nut to crack. BTC’s upsurge to a new high is underpinned by the fact that it came about one year since the Black Thursday Event, which drove prices to lows of $4,000.
The price increase has come during the second wave of a sustained price rally, following last month’s rally that saw BTC reach $1 trillion market capitalization for the first time. The rise is attributable to rising institutional adoption and purchases by individuals.
Institutional adoption on the rise
Ever since Tesla set the pace for large-scale institutional purchases of Bitcoin, pressure has been mounting on other institutions to follow suit. This has led to the growing addition of BTC to corporate balance sheets and its acceptance as a payment method. The spread cuts across the retail sector and corporate hegemons.
In the latest moves, RushOrderTees, a Philadelphian T-shirt company, has announced plans to purchase digital currencies worth $1 million using its cash reserves. The announcement follows the company’s purchase of Bitcoin worth $300,000 last month. This shows that companies are increasingly using BTC purchases as a way of diversifying their investment.
MicroStrategy, which has been among the firms leading the BTC acquisitions globally, has recently added more BTC to its holdings. In making the announcement on Friday, the company CEO, Michael Saylor, revealed that the company had bought $15 million worth of BTC tokens. The company has now spent $2.2 billion in purchasing BTC since August 2020.
Another leader in BTC acquisition, GrayScale, is looking for alternative ways of providing investors with exposure to BTC. The CEO, Michael Sonnenshein, revealed last week that the firm was in the process of applying for BTC Exchange Traded Fund (ETF) approval from regulators.
Breaking Barriers
If all goes according to plan, Georgia will become the first state to incorporate the study of Bitcoin and other digital currencies in its high school curriculum. The state’s House of Representatives has passed a bill introducing digital currency education. The state hopes that this will equip students with holistic financial literacy.
Elsewhere, in France, a lawmaker has petitioned the government to authorize the purchase of BTC by the central bank. This solidifies the view that Bitcoin is increasingly being accepted as “digital gold,” and going forward, and many nations may purchase it as a hedge against inflation.
BTC is, however, being increasingly tracked by authorities. A Japanese court has recently sentenced a Bitcoin trader for evading BTC tax. The trader was fined nearly $200,000 and will spend a year in prison for evading digital income tax.
BTC skepticism is still alive
Even as Bitcoin continues with its steady ascent, skepticism remains among some influential corporate heads. One such person is Luke Ellis, the CEO of Man Group. In a recent interview, he stated that BTC might be viable as a trading tool but not a long-term asset to hold on to.
BTC/USD technical outlook
Bitcoin price just hit a record price past $60,000. However, the price slipped back to $57,922 at the time of writing. BTC/USD will find support at $57,208. The first resistance level will be established at $59,605, and the second one will be at $60,463. A break beyond that point will signal a bullish charge and could set a price rally past the $61,000 level.
The Relative Strength Index (RSI) of the BTC/USD pair is moving upwards. This is an indication of a bullish trend even though the trading volumes of the pair are somewhat low.
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