Bitcoin Steady at $19,000 Amid Growing Signs of Institutional Adoption

A visual representation of the Bitcoin cryptocurrency on December 12, 2017 in London, England.

Jordan Mansfeld | fake images

Bitcoin on Tuesday it floated at the $19,000 level, where it has been holding for about a month with a few momentary breakouts.

The largest cryptocurrency by market cap, whose volatility has been unusually low in recent weeks, was last down 0.7% at $19,074.31, according to Coin Metrics. Ether it fell 1.6% to $1,286.74.

Cryptocurrency prices remain low, with bitcoin off its all-time high for almost a year by more than 70%. Chart analysts have been looking for the cryptocurrency to break lower, to retest its June lows around $17,000 and find a new bottom, potentially as low as $10,000, if it fails to hold at $19,000. However, slight breaks below that level have not proven to be significant.

“Crypto markets continue their slumber with little progress either way,” said Richard Usher, head of OTC trading at BCB Group. “Until broad risk rebounds, this sector won’t.”

Traders are keeping an eye on economic data to be released later this week. Although the recent volatility of bitcoin is low compared to stocks, the correlation between the two remains high.

“Bitcoin price is holding at the $19,000 level, but with the FOMC and CPI minutes ahead this week, the market is likely to refrain from taking risks, which in turn will put pressure on bitcoin,” Yuya Hasegawa, Crypto Markets Analyst at Japanese. crypto exchange Bitbank, he told CNBC on Tuesday.

Prices held steady even after two big announcements indicating that institutional acceptance and adoption of cryptocurrencies continue to rise despite the bear market. On Tuesday, Google announced that it would explore the use of Coinbase’s service to store and trade cryptocurrencies. On top of that, BNY Mellon said on Tuesday that it will be adding crypto to the various assets it owns as a custodian.

“These big companies believe in the potential of digital assets and Web3,” said Oppenheimer analyst Owen Lau. “It takes time to build, but these companies are taking a long-term view to grow their capabilities and make sure they’re not left behind in 3-5 years.”

Last month, Nasdaq also launched crypto custody for institutions and Franklin Templeton, Betterment, Société Générale and other wealth managers have made forays into crypto.

Still, prices are likely to remain stagnant for some time. The Federal Reserve pushed crypto into the pit with its rate hike plan, and investors say it’s up to the central bank to pull it back.

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