(Bloomberg) – Bitcoin flirted at the $ 54,000 level, hitting a two-week high on Tuesday, aided by further signs of institutional interest in the largest cryptocurrency.
The digital token rose as much as 4.3% and was trading at around USD 53,900 as of 12:54 p.m. in Hong Kong. Rival Ether also jumped, extending a two-day rally in the Bloomberg Galaxy Crypto Index to around 13%.
“The uptrend in Bitcoin and Ethereum is back as more and more big money bets flow into cryptocurrencies,” wrote Edward Moya, senior market analyst at Oanda, in an email. “The institutional interest still seems to be strong.”
The narrative that longer-term investors like family offices, insurers, and corporate treasurers are adding to the risk of tokens is controversial but growing in importance. Goldman Sachs Group Inc. recently announced that there is significant demand from institutions working to restart their cryptocurrency trading desk.
This marks the current bull run in Bitcoin as different from the 2017 bubble, which Goldman Sachs said burst. For skeptics, the crypto rally is a prime example of speculative froth triggered by huge impulses that could quickly unwind as financial conditions tighten.
Bitcoin is in a “strong position” to hit $ 75,000, Evercore ISI strategist Rich Ross wrote in a note. The cryptocurrency has seen some wild swings and is currently around $ 4,500 off a record $ 58,350 that was hit on Feb.21. It is up nearly 600% over the past year, a rally that dwarfs more traditional assets.
Ether, the second largest token, has focused on the prospect of reducing supply in the face of an ongoing upgrade to the connected Ethereum blockchain.
$ 1 billion
On Monday, NYDIG, a provider of bitcoin custody services to institutions, announced that life, annuity and property / casualty insurers have direct and indirect bitcoin exposure of more than $ 1 billion on their platform.
NYDIG also announced a $ 200 million growth equity round led by strategic partners including Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual and Soros Fund Management, among others.
The story goes on
In the past few days, oil billionaire Kjell Inge Rokke has spoken out in favor of Bitcoin. Rokkes Aker ASA is starting a new company to realize its potential. At the weekend, the Chinese beauty app Meitu Inc. announced that it had invested in Ether and Bitcoin. Last month, Tesla Inc. announced it had invested $ 1.5 billion in Bitcoin.
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