- Bitcoin was extremely volatile in the day, but the outlook remains bullish.
- Institutional investors are still adopting BTC despite its volatility.
Bitcoin experienced high volatility levels today, experiencing an increase and decrease in its price within short durations. The digital currency rose past $59,000 and then dropped to nearly $56,000 and recovered back to $58,132 at the time of writing. Seemingly, a break past $59,000 could set the stage for a significant price rally.
Institutional adoption of BTC
That BTC has asserted itself as an investment asset is no longer debatable. Goldman Sachs’ global head for digital currencies, Mary Rich, recently stated that the bank is aiming at providing an array of investments in BTC and other digital currencies. The investment will be offered either through fiat currencies and other financial instruments or BTC.
The move would make Goldman Sachs the second bank after Morgan Stanley to offer digital currency investments to its customers. However, in Goldman Sachs’ case, this investment will initially only be offered to affluent customers.
Hopes of a Bitcoin ETF in the United States have been raised further. The Securities and Exchange Commission (SEC) commissioner, Hester Peirce, has recently stated that a BTC ETF in the United States should have been approved a long time ago. She further added that the set standards might have been very high, leading to the unrealistic rejection of the previous BTC ETF suggestions.
The upsurge in BTC price has also triggered great interest in mining. A mining firm in North America, Blockcap, has recently attracted substantial investment. The firm received $70 million worth of cash injection from Foundry Digital and Off The Chain, both of which are prominent investors in digital assets. The funds will be used in scaling up Blockcap’s crypto-assets operations in the coming year. This underlines the bullish outlook for BTC among big shark investors.
Bullish outlook for BTC among big firms may play a significant role in pushing up prices. The CEO of the Crypto-exchange platform, Kraken, Jesse Powell, has recently claimed that the value of BTC by the end of the year will be equivalent to the price of a Lamborghini or Bugatti.
Securing the ecosystem
For all its market gains, Bitcoin continues to be a target for fraudsters. Recently, several people fell victim to falsified digital wallet currencies applications on both the Apple App Store and Google Android Store. The app mimicked the name and visual representation style of Trezor hardware wallets and was used to dupe more than 17 BTC coins from users.
In an interesting development, it has recently been disclosed that Elon Musk discovered a bug in the BTC pay server and helped the technical support team to fix the problem. This will help in eliminating or reducing several attempts by attackers to take advantage of existing loopholes and steal from users.
With each passing day, concerns over regulatory maneuvers in the crypto-sphere keep piling up. Recently, the New Civil Liberties Alliance, a non-profit civil rights group, has taken on the United States Treasury and is fighting against the latter’s proposal for a crackdown on the private wallets of digital currency holders.
The civil rights group has termed this as an unconstitutional grabbing of power. In the proposal, it is stated that digital currencies would be grouped under the regulated monetary tools. This would mean that the confidential data of digital currency users such as Bitcoin would be recorded as directed by the Bank Secrecy Act. A successful lobby by the Treasury would weaken the decentralization and privacy framework upon which cryptocurrencies are built.
BTC/USD technical outlook
The price of Bitcoin today is nearly $59,000. It is trading at around $58,800.
The Relative Strength Index (RSI) for the BTC/USD pair fell close to 30 at 33.09 on March 31, 2021, which is way below the midpoint. The beginning of April has been uneventful for the pair, yet it is gradually gaining pace: as of this writing, the RSI has been above 70, confirming the investors’ bullish sentiment.
A bearish run could drive prices lower to find support at $57,045. However, a bullish charge will more likely achieve marginal gains, with a resistance encountered at $59,773.