After topping the $58,000 level final month and cratering to the $43,500 mark on February 28, bitcoin on Tuesday considerably recouped losses with a two-week higher rally. The value was hovering close to $54,800 on Tuesday evening, according to the information from CoinDesk, surpassing the peak value of $54,615 on February 23 on the back of investors’ interest and the stimulus package from the US government. “The recent bitcoin rally above $54,000 is because of the $1.9 trillion stimulus package announced by the US Senate. The stimulus package is expected to drive economic recovery across sectors in the US as it provides direct benefit transfer to individual US citizens, unemployment benefits, and support to state governments,” Shivam Thakral, CEO BuyUcoin told TheSpuzz Online.
A related impact was visible on cryptocurrencies and stocks final year as properly. When the US Congress had passed the $484 billion Covid relief package in April final year, it coincided with the jump in bitcoin from more than $6,900 to practically $9,000, displaying the impact of the bill on investors’ appetite for dangers involved in cryptocurrencies. Likewise, the $900 billion second stimulus announced in December was followed by the jump in bitcoin costs from more than $23,000 to practically $29,000 on December 31, 2020.
Institutional investors also have been upbeat about bitcoin. Recently Norwegian conglomerate, Aker ASA engaged in offshore fishing, building, and engineering had announced its plans to induct bitcoin into its enterprise operations, “which has pushed the bitcoin price above $54,000,” added Thakral.
Also study: Crypto startups heave sigh of relief for now with govt’s ‘calibrated’ strategy towards cryptocurrencies
Also, the US-based provider of technologies and investment options for bitcoin NYDIG on Monday had announced $200 million fundraising led by strategic partners Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments. As an instance of accelerating institutional bitcoin adoption, NYDIG announced that life, annuity, and home and casualty insurers owned, in aggregate, more than $1 billion of direct and indirect bitcoin exposure facilitated exclusively by NYDIG.
“In terms of kind of institutional demand, we have seen no signs of that abating…We see a huge amount of demand institutionally, but we’re also seeing that reflected in the private wealth management space as well,” mentioned Mathew McDermott, Head of Digital Assets for Goldman Sachs’ Global Markets Division in a podcast on Friday. “2017 was very much a retail-driven market. This time around as mentioned, we’ve just seen a huge volume of institutional demand across the broad spectrum of different industry types,” he added.