An early morning sell-off in the Bitcoin market indicated calming down after more companies announced their investments in the cryptocurrency.
Meitu, known around the world for its photo-editing app, has included Bitcoin valued at $ 17.9 million and Ether valued at $ 22.1 million (the native cryptocurrency of the second largest blockchain project, Ethereum) on its balance sheet.
In a press release released on Sunday, the Chinese company said it sees the two cryptocurrencies as a viable diversification for cash, reiterating the popular store of value narrative that saw Bitcoin price rise more than 1,200 against a bearish US dollar Percent drove up. In early February, US automaker Tesla used the same reason to invest $ 1.5 billion in Bitcoin.
“Holding cash is subject to devaluation pressure due to the aggressive increase in the money supply by central banks around the world,” said Meitu’s press release.
Maintain upward trend
Bitcoin surged above $ 51,800 on Sunday as the U.S. Senate voted a majority for President Joe Biden’s $ 1.9 trillion stimulus plan. However, higher valuations caused traders with a short-term risk appetite to hunt for early gains, leading to a price correction in Monday’s early Asian trading session.
Bitcoin holds support above its recently flipped declining trendline resistance. Source: BTCUSD on TradingView.com
The cryptocurrency fell to $ 49,238 before the London morning bell, just to reduce some of its intraday losses over the course of the session. The short-term bullish revival came after news of another company investing in Bitcoin.
The Norwegian holding company Aker ASA announced that it is launching a new wing called Seetee AS. The company’s press release announced that it would invest in projects and companies across the Bitcoin ecosystem via Sea Tea, for which 1,170 BTC had been allocated as standard capital reserves. At current exchange rates, they’re worth around $ 59 million.
Aker has partnered with the blockchain development company Blockstream for sea tea.
“We will be Hodler,” said Øyvind Eriksen, President and CEO of Aker ASA.
Yield FUD holds
Bitcoin fell 1.33 percent ahead of the New York opening bell despite the bullish news.
So it appears that the cryptocurrency’s upside is facing headwinds from an ongoing sell-off in the government bond market. Recently, rising yields on long-term US Treasuries have weighed on investor demand for pandemic winners like bitcoin, tech stocks, and gold.
On the other hand, a faster vaccination program and additional fiscal stimulus led investors to believe that the US economy would recover quickly. This resulted in a capital outflow of seemingly overvalued assets in sectors that would benefit most from the reopening of the economy. These winners include banking, energy, travel, and hospitality.
US Treasury bond yields will rise on Monday. Source: US10Y on TradingView.com
Nasdaq 100 futures fell 1.5 percent in pre-market trading on Monday, suggesting tech stocks extend their losses. Bitcoin remained correlated with the tech-heavy index for a short time.
However, hardcore crypto bulls continued to believe that inflation would push companies, investors and traders back into the Bitcoin market. Teddy Cleps, an independent analyst, said he expects BTC / USD to hit $ 60,000 in the upcoming sessions.
