How Will Mastercard’s Crypto Acceptance Affect Bitcoin Price?

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Mastercard, the leading credit card conglomerate, allows its users to use some cryptocurrencies on its payment network, making it the latest version to introduce crypto. Bitcoin price moved quickly after the news from Mastercard and BNY Mellon broke, which got the market going again.

Raj Dhamodharan, Executive Vice President, Products and Partnerships for Digital Assets and Blockchain, said:

“Many of the hundreds of digital assets in circulation have to tighten their compliance measures so that they do not meet our requirements. We anticipate that consumers and the entire ecosystem will congregate around the crypto assets that provide reliability and security.

By moving to directly supporting digital assets, many more merchants will be able to accept crypto – an ability that is currently limited by proprietary methods that are unique to each digital asset. This change will also avoid inefficiencies so that both consumers and merchants will not have to switch between crypto and traditional to make purchases. “

What will happen next to crypto and bitcoin?

Mastercard’s decision to introduce cryptocurrencies is made as BNY Mellon also enters the crypto market.

In general, the level of general acceptance in the cryptocurrency space among institutional investors and public corporations is currently unprecedented.

Analysts and fund managers say Bitcoin has never seen so much institutional interest in the past, and note that market sentiment remains largely positive.

The 4-hour Bitcoin price chart. Source: BTCUSD on TradingView.com

According to statements from Mastercard and BNY Mellon, the price of Bitcoin rose from around USD 45,000 to a new all-time high of over USD 48,000.

Sentiment regarding Bitcoin was already clearly positive after Tesla bought Bitcoin worth $ 1.5 billion. The news from Mastercard and BNY Mellon further reinforced the positive market situation.

In the near future, traders say Bitcoin is likely to continue its rally despite a severely crowded futures market.

Demand for bitcoin came from the spot market and from institutional vehicles like the Grayscale Bitcoin Trust.

Even if the futures market is extremely overheated, the likelihood that the rally will continue remains high.

The risk of short-term corrections remains as the futures market is reset, but the macro picture remains healthy.

Wall Street is coming en masse

Kelvin Koh, a partner at Spartan Group, one of the largest DeFi funds in Asia, emphasized that the most respected figures on Wall Street and Silicon Valley are now invested in crypto. He said:

“Mark Cuban, Peter Thiel, Elon Musk, Chamath P., Paul Tudor Jones, Stan Drunkenmiller. The who’s who of Wall Street and Silicon Valley all own crypto. If you are still a skeptic what is your defense? Are you smarter than these guys put together? “

Given the continued inflow of capital from institutions and wealthy investors, the general positivity regarding Bitcoin is likely to remain intact for the foreseeable future.