After a stark plunge Thursday that wiped out $100 billion in market value, the world’s largest cryptocurrency is back near all-time highs Tuesday as corporations like Visa and PayPal join other institutional players in expanding their crypto offerings.
As of 4 p.m. EDT, the price of bitcoin has climbed 2% over the past 24 hours, pushing its market capitalization up to $1.1 trillion–about $40 billion shy from an all-time high on March 13 and pushing gains to roughly $144 billion since a sharp correction on Thursday, according to crypto-data website CoinMarketCap.
‘Analysts are pinning the resurgence to still-booming institutional adoption, including PayPal’s new cryptocurrency checkout service, which launched Tuesday and allows the company’s more than 375 million customers to shop using cryptocurrency at millions of online merchants (PayPal didn’t specify an exact figure, but says the program will expand in the coming months).
Qanda Senior Market Analyst Edward Moya calls the move “another massive cryptocurrency endorsement from Wall Street” and “further proof of mainstream acceptance” just one day after Visa said it will start settling transactions with cryptocurrency partners using a token built on the Ethereum blockchain, which underpins the world’s second-largest cryptocurrency, ether.
Moya notes that bitcoin, which is priced at about $59,080, could struggle to push past $60,000 again but says the recent developments “should be enough to keep the bullish trend going strong.”
Nigel Green, the CEO of $12 billion wealth advisory deVere Group, said in an email Tuesday that growing corporate investments from the likes of Tesla and billionaire Jack Dorsey’s Square are signs that institutions are employing the “buy the dip” mantra popularized by retail investors—meaning they’re loading up on bitcoin when prices plunge.
What To Watch For
Regulation. Though Wall Street is warming up to bitcoin, legendary hedge fund manager Ray Dalio warned last week that he thinks there’s a “good probability” bitcoin could be banned by the U.S. government, similar to how it banned gold nearly a century ago. The Securities and Exchange Commission has been slow to issue regulation for cryptocurrencies.
In an interview with Forbes, SEC Commissioner Hester Peirce said Gary Gensler, President Joe Biden’s nominee to head up the agency, would likely be “sympathetic to the call for regulatory clarity.” When nations like South Korea started cracking down on cryptocurrency three years ago, prices crashed as much as 80% over the course of one year, though it’s unclear how such a development could affect markets today.
Bitcoin prices have skyrocketed over the past year amid booming institutional adoption and inflation fears sparked by unprecedented government spending to combat the pandemic. Last week, billionaire Elon Musk tweeted that Tesla would start accepting bitcoin for vehicle purchases and retaining the cryptocurrency tendered, as opposed to converting it to U.S. dollars. Also this month, Fidelity Investments filed an application for its first bitcoin exchange-traded fund, and banking powerhouse Morgan Stanley said it would open up bitcoin exposure to its wealthy clients, though it’s limiting such funds to investors with “an aggressive risk tolerance.”
Bitcoin has surged nearly 800% over the past year. Its return of about 96% this year is more than any sector tracked by the S&P 500.
SEC Commissioner Explains Why A Delayed Bitcoin ETF Has Consequences (Forbes)
Bitcoin Plunge Erases $100 Billion In 24 Hours–Here’s How Long The ‘Bloodbath’ Could Last (Forbes)
Legendary Investor Warns Bitcoin Ban ‘Likely’ As Price Suddenly Soars Toward $60,000 (Forbes)
I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at email@example.com
Source: Bitcoin Adds Back $150 Billion As Visa, PayPal Rev Up Crypto Offerings And Institutions ‘Buy The Dip’
How to Pinpoint the Best Social Media Platform for Your Business
Stop chasing shiny new social media platforms, and be consistent on a few.
IKEA Says Ever Given’s Suez Canal Delay Should Only Have ‘Minor Impact on Availability’
The home-furnishings giant had 110 containers of products stuck on the recently freed cargo vessel and ships in its shadow.
That Time Ben Franklin Slept in the Same Bed With John Adams
As we get back to traveling, let’s be grateful it’s not 1776.
Nike Sues Brand That Used Human Blood to Create ‘Satan Shoes’
3 Ways Elearning Is Disrupting the Education Industry
Digital education, driven by advanced technologies, represents a major opportunity for entrepreneurs and investors alike.
E-commerce automation, how to improve online sales with the help of robots?
Following explosive growth as a result of the pandemic, e-commerce has had to incorporate new tools to meet the needs of shoppers, who are increasingly demanding of online services.
The Unwritten Rules of Naming Your Business
You may not know it, but your industry has unwritten rules when it comes to business names. Find out what yours might be so you can craft a name that resonates with your customers.
How to Create an Effective Sales Funnel Using Instagram
Discover what you need to do to begin attracting more prospects and closing more deals with help from your Instagram account.
5 Lessons I Learned as an Accidental Entrepreneur
You don’t have to start a business to learn from my journey.
Some Of The Many Changes To Amazon’s Business Model In 2021
Amazon has been investing in its long-term growth prospects for the better part of two decades and 2021 will prove to be no different. Regardless of what and where Amazon invests in, there is a consistent theme: Amazon is building on its massive scale to exert its dominance or encroach in rival’s territory. Q4 2020 […]
Apple failed to stop Swatch from using Steve Jobs’ phrase “One more thing”
According to Bloomberg, the watch company may have acted in bad faith, but there is no reason to believe that the phrase is unique to the late Jobs.
Seven “Signs And Symptoms” Of Organizational Trauma
Organizational trauma isn’t always caused by a single horrifying event. It can also be ongoing or cumulative (say, a global pandemic). However, the impact on employees and organizations is fairly predictable, says workplace trauma expert Diana Hendel. Here are some common threads she sees in every traumatized organization. Q4 2020 hedge fund letters, conferences and […]