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Popular cryptocurrency Bitcoin neared an all-time high yesterday, rising 2.6% to $61,229. Bloomberg reports this increase is the highest bitcoin has risen in nearly a month. In March this year, the cryptocurrency reached its record price of $61,742. These surges follow an increasing embrace of Bitcoin as Wall Street and financial institutions such as Goldman Sachs accept the investment potential of the cryptocurrency. “Elsewhere, Goldman Sachs Group Inc. has said it’s close to offering investment vehicles for Bitcoin and other digital assets to private wealth clients. Morgan Stanley plans to give rich clients access to three funds that will enable crypto ownership,” reports Bloomberg. – Jarryd Neves
Bitcoin nears record before largest US crypto exchange listing
By Joanna Ossinger
(Bloomberg) – Bitcoin neared an all-time high on Monday as bullish sentiment gathered steam ahead of a listing by the largest US cryptocurrency exchange.
The token rose as much as 2.6% to $61,229, the highest in nearly a month, before falling back to trade little changed. On March 13, Bitcoin reached a record of $61,742. The cryptocurrency is up almost ninefold in the past year, a return that towers above that of more familiar assets like equities or bullion.
Against the backdrop of Wall Street’s growing embrace of crypto, the direct listing of digital-token exchange Coinbase Global is fanning interest. Coinbase is due to go public on the Nasdaq on April 14, the first listing of its kind for a major cryptocurrency company and a test of investor appetite for other start-ups in the sector.
Meanwhile, exchange tokens, such as Binance Coin, are seeing their value rise ahead of Coinbase’s public debut as well. Binance’s, known as BNB, rose 23% Monday, according to CoinMarketCap.com. Huobi Token and KuCoin Token, among others, also gained.
“A crypto company moving to IPO is a big milestone,” said Nick Jones, CEO and co-founder at cryptocurrency wallet Zumo. “It’s moves like this that make consumers feel safer with crypto and ultimately boost confidence in the space.”
A growing list of companies are looking at or even investing in Bitcoin, drawn by client demand, price momentum and arguments that it can hedge risks such as faster inflation. Tesla earlier this year disclosed a $1.5bn investment in Bitcoin and more recently started accepting it as payment for electric cars.
Elsewhere, Goldman Sachs Group Inc. has said it’s close to offering investment vehicles for Bitcoin and other digital assets to private wealth clients. Morgan Stanley plans to give rich clients access to three funds that will enable crypto ownership. The deck of exchange-traded funds tracking the token is expanding, while Paypal Inc. and Visa Inc. have begun using cryptocurrencies as part of the payments process.
A study by Dutch asset manager Robeco suggests that despite its high volatility, a 1% allocation to Bitcoin in a diversified multi-asset portfolio could be beneficial given its resemblance to gold and its near zero correlation to other asset classes.
“In recent months, a clear and emphatic narrative that Bitcoin is becoming a store of value in the form of digital gold has developed,” according to Jeroen Blokland, a portfolio manager at Robeco.
- Monetary Authority of Singapore warns against cryptocurrency as Bitcoin gains traction
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- Bullish on bitcoin? Financial advisor Dawn Ridler, OVEX CEO Jon Ovadia weigh in on cryptocurrencies
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