The cryptocurrency market shrugged off doubts and uncertainties that presented itself in September to register a 13 per cent gain this week amounting to $270 billion in market cap. Bitcoin (BTC) is currently trading near the $55,000 level, its highest since May this year. It broke several key resistances along its way this week and has registered a 14 per cent overall gain. In this article we summarize the stories that drove crypto in recent weeks.
While China doubled down on its crackdown on cryptocurrency trading and exchanges in September, the rest of the world has been more welcoming to the new wave of technological innovation that blockchain offers. Brazil is looking to accept BTC as a legal method of payment according to the country’s Federal Deputy. It will be the second country to accept BTC after El Salvador (a Central American country) if it materializes. In Africa, the Nigerian Federal High Court has approved the rollout of a central bank digital currency (CBDC), to be called eNaira, as a legal tender in the country. According to the International Monetary Fund (IMF), more than 100 countries are exploring the launch of CBDCs in the near future. In India, RBI is said to be exploring the same.
There has been speculation that the US Securities and Exchange Commission (SEC) will soon approve BTC exchange-traded funds (ETFs). A ETF enables investors to gain exposure to BTC without having to hold the underlying cryptocurrency. Multiple companies have applied for approval with the US SEC for both Bitcoin and Ethereum based ETFs. These are likely to trigger wider adoption among investors who are currently skeptical of cryptocurrencies. Similar products have been approved in Canada and New Zealand this week.
Major banks headquartered in the US are already expanding their services to allow their clients to invest in cryptocurrencies. JPMorgan observed the trends this week with a note on how institutional investors in the US are preferring BTC over gold as an inflationary hedge in recent weeks.
Visa is working on an interoperable blockchain hub that can connect to multiple blockchain networks and enable transfers of different crypto from various protocols and wallets.
Minneapolis-based US Bank has rolled out crypto custody services for those institutional investment managers with private funds seeking BTC exposure. Twitter has expanded its BTC tipping feature to all iOS users globally this week.
As we head into mid-October, we expect a few of the top companies to announce their investments in BTC as part of their quarterly updates giving more momentum to the market.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.