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October 2, 2022
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Bitcoin returns above $ 52,000 in less than a week

The most popular cryptocurrency, bitcoin (BTC) is rising above the $ 52,000 level again after leaving this zone less than a week ago and falling below $ 44,000 on Sunday.

At the time of writing, BTC is trading at $ 52,114 and is up 4% in one day and 5% in a week. Of the 10 major currencies by market capitalization, BTC is surpassed only by polkadot (DOT) and litecoin (LTC). Ethereum (ETH) increased by 2%.

As reported, Gary Gensler, appointed as chairman of the United States Securities and Exchange Commission, said yesterday that ensuring that crypto markets are free from fraud and manipulation is a challenge for the agency. However, he also emphasized that blockchain is a catalyst for change and that BTC and other cryptoassets have brought a new way of thinking about payments and financial inclusion. Gensler promised that “he would work with other commissioners to promote new innovation, but also at the center to ensure investor protection”.

“Although the Bitcoin market reacted quickly to his comments, Gensler was very positive about Bitcoin and cryptocurrencies. I am hopeful that the new administration will help promote innovation in blockchains, cryptocurrencies and digital assets, rather than suffocating it, ”John Wu, president of Ava Labs, a blockchain technology company, said to Bloomberg.

Meanwhile, US-based international banking giant Citi said earlier this week that “bitcoin’s borderless design and other features could position it to become an international trade currency in the future”.

“Citi Group’s statement of support for Bitcoin is part of a broader theme of institutional interest that heralds a tipping point for the widespread adoption of crypto assets. 2019 and 2020 saw institutional participation change from early adopters and pioneering companies building capabilities in anticipation of the market, ”said Seamus Donoghue, vice president of sales and business development at Metaco , a security-critical digital asset infrastructure provider for financial institutions, in an email comment.

According to him, now that cryptography is a trillion dollar asset class, financial institutions are finding themselves in the difficult position of increasing demand from their customers to support that asset class and those who did not anticipate it are fighting for it. a solution.

Last week, the strategists of the JPMorgan Chace & Co. said that in a multi-asset portfolio, investors are likely to be able to add up to 1% of their allocation in cryptocurrencies to obtain any efficiency gains in the risk-adjusted overall portfolio returns.

Meanwhile, Jurrien Timmer, Director of Global Macro at Fidelity Global Asset Allocation, said in his recent article that “some investors may want to consider bitcoin, along with other alternatives, as a component on the bond side of a stock / bond portfolio 60/40. “

The fundamentals of institutional investments in Bitcoin will not have changed in the past few days and, at the very least, price stagnation has been driven by lower volumes with some realization of profits. Much of the institutional money will follow a buy-and-hold strategy, rather than volatility trading and therefore ignore short-term price cuts, said Martin Worner, director of operations and vice president of product at Confio, a developer of tools for multi-blockchain applications.

In addition, as reported, the Chicago Board Options Exchange has filed for listing a BTC exchange-traded fund from New York-based investment management firm VanEck and its Bitcoin Trust and the SEC is now ” on the clock ”- with the crypto world eagerly awaiting your response.

Donoghue added.

A Bitcoin ETF listing in the U.S. is likely to be the next big sign of progress in adoption. As we saw with the recent new ETF listings in Canada, in a matter of days they set records for [ativos sob gestão] for new fund listings – an ETF listing in the U.S. would be transformative and would allow anyone with a brokerage account to access Bitcoin.

Source: CryptoNews

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