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$50,000 is BTC’s first, not last, hurdle in 2021

Photo of: Nathan VDH
by Nathan VDH

The $50,000 is a hurdle for Bitcoin, which is nevertheless close to it. On February 14, the cryptocurrencies set a new historical record at 49,500 dollars. The resistance is there, however.

In the world of finance, and even more so in the world of crypto-actives, prediction proves to be a difficult, even risky exercise. Guggenheim investment director Scott Minerd knows all about it.

In January, the financier was very skeptical about Bitcoin’s ability to establish a new ATH in 2021. Less than a month later, the figures prove him wrong. Investor interest is there and the value of BTC is still rising.

Tesla’s cash investment has driven the market. And on February 14, Bitcoin was one step closer to the $50,000 threshold. That resistance remains, but crypto still sets a new ATH at $49,500.

However, the price of BTC has been fluctuating for several days. On February 15, it was close to $47,000. Breaking the $50,000 mark will not be easy. The participation of the institutionals could once again contribute to it.

However, the adoption by these investors is far from being anecdotal already. Michael Novogratz estimates that they now represent 3% of the Bitcoin in circulation. However, from this approximately 18 million BTC, one must subtract the 3 million lost tokens.

The share of institutional investors remains very significant despite everything. And it is not the only lever that can extract value from Bitcoin. These investors also need tailor-made financial services to invest.

This is where the banks come in. Last week, BNY Mellon, the oldest US bank, announced its intention to manage its customers’ Bitcoin investments in 2021 via crypto services.

And this is not an isolated case. Cointelegraph recalls that documents suggested as early as December that the Deutsche Bank would be willing to introduce its own custody solution. In addition to this, it would also offer services for exchanging and issuing tokens.