Bitcoin surged to fresh highs above $60K on Saturday, marking the one year anniversary of the Black Thursday crash with an astonishing show of strength.
The buying frenzy began as another round of government checks hit American’s bank accounts. Biden’s $1.9 trillion plan was signed into law last Thursday afternoon, sparking an optimistic rally across stocks and cryptocurrency markets as millions of $1,400 stimulus checks were distributed.
The majority of small-cap and large-cap altcoins made double-digit gains over the week, and BNB shrugged off the uncertainty with a 10% increase.
This Week’s Highlights
- Bitcoin hits $60K, marking 1400% rally
- Wall Street tightens crypto embrace
Bitcoin hits $60K, marking 1400% rally
On March 12th 2020, global markets were sucked into a vortex of pandemic-induced despair. Bitcoin fell almost 50% and bottomed out below $4K, but since then it has surged over 1400% to hit highs above $60K almost a year to the date.
The new record price comes a month after Bitcoin crossed the $50K mark for the first time in mid-February, and marks a doubling of price in 2021 amidst broader acceptance from institutional buyers.
Yet as the milestone was crossed during the weekend, when trading volumes are usually much lower, traders will now be looking to see if the rally can continue on Monday as sober institutional buyers hit the buy button.
Wall Street tightens crypto embrace
Wall Street players are scrambling to meet rising demand by offering institutional clients exposure to cryptoassets.
Goldman Sachs’ president and chief operating officer John Waldron told Reuters last week that “client demand is rising”, and rival investment bank JPMorgan has already gained approval to offer a “cryptocurrency exposure basket.” This will give clients access to the booming crypto economy through positions in related companies, including MicroStrategy, Square, Riot Blockchain, and chipmaker NVIDIA.
Elsewhere, the Chairman and CEO of America’s largest mutual life insurer New York Life, Ted Mathas, has joined the board at NYDIG (New York Digital Investment Group), which could indicate that we will soon see Bitcoin insurance products.
The week ahead
Traders are waiting with bated breath for the market to open on Monday, when stimulus check recipients are widely expected to plough their funds into the stock market.
Yet we could also see stimulus funds move into crypto. When the first $1,200 checks were rolled out last April, big exchanges reported dramatic rises in the number of $1,200 transactions.
On Tuesday and Wednesday, U.S. central bank officials are expected to meet to clarify their latest thinking on monetary policy. This could set the tone for Bitcoin trading for the rest of the week.
Written by a team of experienced financial analysts at eToro.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.