Bitcoin surged Thursday after merchants realized MasterCard’s plans to incorporate cryptocurrencies into its traditional payment services later this year.
The credit card giant’s reveal came days after Tesla, a Fortune 500 automaker, put $ 1.5 billion worth of Bitcoin on its balance sheets this Monday, and further claimed it made payments in the benchmark cryptocurrency for its Would accept products and services. Bitcoin prices rose about 20 percent on the news.
Traders responded similarly to MasterCard’s announcement, increasing Bitcoin price by more than 3 percent on Thursday, despite the cryptocurrency correcting lower.
Bitcoin continues its price rally on the MasterCard adoption news. Source: BTCUSD on TradingView.comBitcoin continues its price rally on MasterCard adoption news. Source: BTCUSD on TradingView.com
The BTC / USD exchange rate hit an intraday high of $ 46,658 before the opening bell in New York, showing its bias to retest its previous record high above $ 48,000, followed by an uptrend towards $ 50,000 that many analysts consider the psychological Look at Bitcoin’s upside target.
BNY Mellon goes bitcoin friendly
Further evidence of a prolonged uptrend is provided by the Bank of New York Mellon Corp., the oldest bank in the United States, which on Thursday announced its jump into the cryptocurrency sector.
The custodian service announced that it will hold, transfer, and spend Bitcoin and other digital assets on behalf of its wealth management clients, paving the way for more established institutions to securely and legally access crypto investment services.
“Digital assets are becoming part of the mainstream,” said Roman Regelman, managing director of BNY Mellon’s asset service and digital business
Mr. Regelman noted that many hedge funds, asset managers, and other institutional investors turned to BNY Mellon to offer bitcoin services in line with traditional assets like treasuries, technology stocks, etc. This prompted the bank to incorporate crypto assets.
You should check out @BNYMellon, @Visa, @Mastercard, @Fidelity, @PayPal, @massmutual, @square, @blackrock, @AB_insights, @GoldmanSachs, @ARKInvest, @RayDalio, etc for the potential value of #bitcoin & digital are more likely to consider assets than economists, doomers, and cable news experts
– Mike Dudas (@mdudas) February 11, 2021
What’s coming?
The bitcoin industry is now wavering between warnings and euphoria.
In a note written for the Financial Times, economist Nouriel Roubini reiterated his anti-crypto stance and urged companies not to copy Tesla’s Bitcoin investment. Meanwhile, JPMorgan & Chase strategists noted that companies shouldn’t keep Bitcoin in their reserves, citing the underlying price volatility versus stable cash.
Jerry Klein, executive director at Treasury Partners, added that companies “invest their money in very high quality, short-term fixed income securities and are willing to accept relatively low returns.” They will not buy Bitcoin because it is too volatile for their balance sheets.
And then there was Twitter. Social media giant Ned Segal’s CFO noted that they could add BTC to their reserves if their employees and suppliers demand payment in the cryptocurrency. This also kept Bitcoin’s general upward momentum alive.
