Yerevan (CoinChapter.com) — Bitcoin prices rose Tuesday as traders assessed two apprehensively influential market updates that concern the cryptocurrency’s growing prominence on Wall Street.
At first, crypto custody firm NYDIG revealed that customers of some US-based banks would now be able to buy, sell, and hold Bitcoin through their existing accounts. The declaration took cues from its partnership with FinTech giant Fidelity National Information Services (FIS) to enable banks to offer bitcoin-focused services in the coming months.
Meanwhile, the second big news came from Galaxy Digital, a crypto-centric financial service firm with more than $40 billion worth of assets under management. The New York-based company announced that it would buy BitGo Inc., a digital asset trust company, for $1.2 billion, marking the biggest-ever acquisition to date in the crypto market.
Galaxy founder and Chief Executive Michael Novogratz openly proclaimed in an interview that their BitGo acquisition intends to make them so big that they compete with other financial giants in traditional space. Galaxy is preparing to go public this year in the US. It currently trades on the Toronto Stock Exchange.
Bitcoin Takes Wall Street
The announcements provided more evidence about Bitcoin’s growth in traditional financial markets. The flagship cryptocurrency became one of the most attractive picks for investors and traders alike, especially against the Federal Reserve’s expansionary policies through which it expects to maintain near-zero interest rates until 2023. The prospect of cheaper lending has sapped investors’ appetite for the US dollar.
On the other hand, their interest in riskier markets, such as stocks and bitcoin, has surged immensely since March 2020. In particular, Bitcoin proposes to protect investors from higher inflation caused by the Fed’s quantitative easing approach. That serves as the same reason why many companies, including Tesla, Square, Ruffer Investments, and MicroStrategy, have decided to replace a good portion of the dollar reserves with Bitcoin.
Read more: Bitcoin Falls After Federal Reserve’s Extended Quantitative Easing Assurance
The result is a booming Bitcoin market. The flagship cryptocurrency has surged from $3,858 in March 2020 to almost $65,000 in April 2021, sparked by the large-scale investments mentioned above. Meanwhile, growing Wall Street interest in the form of new bitcoin-focused investments funds by JPMorgan, Morgan Stanley, and Goldman Sachs, and crypto services by PayPal have further fueled the upside bias.
In other news, US cryptocurrency exchange Coinbase became the first crypto-centric business to gain a direct listing on the Nasdaq Stock Market. Bakkt LLC has revealed its plans to make a public stock offering through a SPAC that would give it a $2.1 billion valuation.
On Tuesday, the Bitcoin price surged by almost 9.5 percent to hit an intraday high of $57,980. That entirely negated the losses it incurred during the previous session, signifying that Wall Street adaption remains a bullish cue for a majority of crypto traders.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
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