Bitcoin Sees $250K Prediction, As Crypto Banking Inches Closer
A dramatic week for cryptocurrencies in general and Ether in particular as the world’s second largest coin has managed to hit another fresh all-time-high. This comes amid US inflation rates hitting 4.2% in April on base effect, the fastest rate since 2008.
Bitcoin’s New Price Target? A Stunning $250K
Despite the fact that Bitcoin currently appears to be struggling to break back up above the $60,000 mark, most analysts and experts are confident that the coin still has quite a way to go to reach its full potential.
CEO and Founder of Morgan Creek Capital Management, Mark Yusko, has predicted that Bitcoin could hit $250,000 within the next five years. Yusko bases his prediction on the coin’s increased usage, widespread network adoption, as well as similarities between Bitcoin and gold.
This coincided with CME Group announcing that over 100,000 micro Bitcoin futures had been traded during the first six days of their launch. The micro Bitcoin futures had been a much-anticipated event in the world of cryptocurrency as these futures allowed smaller scale investors with a more conservative appetite for risk the ability to trade the coin at lower entry points.
Bitcoin has managed to grow 550% in just over a year, joined by Litecoin, Ethereum, and even the “joke” currency Dogecoin.
Nebraska on the Cusp of Establishing Formal Crypto Charter for Crypto Banks
A bill backed by Nebraska’s state lawmakers has made banks’ crypto offerings closer than ever in the Midwestern state. On Monday, Senators advanced the bill with a 39-1 vote to allow state-chartered banks to begin offering cryptocurrency services, namely permitting customers to buy and sell crypto. Senator Mike Flood introduced the bill, describing it as “a once in a lifetime opportunity not only for my district but the state of Nebraska”. Flood also stated that he hoped, through the passage of this bill and becoming an early embracer of cryptocurrencies, that high-paying tech and finance jobs would follow for his state.
If passed, this measure would make Nebraska the second state to create a formal charter for what is being dubbed as “crypto banks,” the other being Wyoming which chartered its first back in September of 2020. By creating a separate division within their companies, these banks would be able to extend crypto offerings to existing clients.
The bill still has to go through two more rounds of voting before it is passed into law.
Goldman Sachs Throws Hat Behind Crypto Firm
US investment bank Goldman Sachs has backed the cryptocurrency data firm Coin Metrics through a round of funding that managed to raise more than $15 Million. A crypto market data and blockchain technology provider, Coin Metrics will use these funds to offer their clients more tools for digital assets.
Goldman Sachs recently changed their tune regarding crypto; back in May 2020, executives at the firm were quoted stating that Bitcoin was not a “suitable investment for our clients”. Nearly a year later, the firm has filed for a Bitcoin-tied ETF, with the filing details revealing that “The ETF may have exposure to cryptocurrency, such as Bitcoin, indirectly through an investment in a grantor trust”.
This news comes on the heels of Goldman Sachs executing its first Bitcoin derivatives trade just days ago.
Partnership in Place to Build Framework for US Banks Access to Crypto
More exciting news on the crypto banking front comes in the form of a partnership between financial tech giant Fidelity National Information Services and NY-based crypto custody firm NYDIG. The two financial firms are working to enable commercial banks to offer Bitcoin to customers as early as August.
This service would allow customers of the hundreds of U.S banks enrolled in the program to buy, hold, and sell Bitcoin through their existing bank accounts. Speaking on the matter, president of NYDIG Yan Zhao said, “With Bitcoin available through your bank to be purchased with as little as $1, now you have an attractive asset that’s available to be owned by anyone in any amount. We think that’s huge for economic empowerment”.
This is set to open up access to cryptocurrencies for both timid investors who are motivated by banks’ involvement, as well as those who lack the know-how of investing through exchanges. It also exponentially lowers the bar for investors to get involved in the crypto space as they can now purchase digital assets for as little as $1. It was only two weeks ago that Venmo announced that their customers can start their crypto journey with as little as $1, a move that gave crypto access to more than 70 million users and counting.
Elon Musk and the Dogecoin Saga Continues
During his appearance on Saturday Night Live, founder and CEO Elon Musk announced that his company SpaceX would be accepting the controversial (and somewhat ‘meme-like’ cryptocurrency) dogecoin for its upcoming moon mission. Counterintuitively, this announcement triggered a sell-off of the currency, the price of which later dropped by 40%. Still, the coin has been a massive success, having gained over 12,000% over the past five months.
Confirming the news that was perceived to be a joke by the often jestful Musk, Canadian company Geometric Energy Corporation confirmed that it would be paying SpaceX in dogecoin in order to secure a spot on the 2022 space mission. Speaking to CNN, Geometric Energy Corporation’s CEO exclaimed that “This is not a joke”.
Tom Brady Hints at Crypto, Sparking Bitcoin Mania
By simply changing his profile photo, Tampa Pioneers quarterback Tom Brady set Twitter abuzz with rumors of him endorsing cryptocurrencies.
A picture edited to give him “laser-eyes” (referring to Bitcoin investors who are laser-focused on holding until the coin is worth $100,000) has sent Twitter into a frenzy as the pro footballer semi-confirmed his long time rumored interest in crypto.
rady had previously announced his involvement in project Autograph, a platform that would allow celebrities to list and sell the digital collectibleNTFs (non-fungible tokens).
At the time of publishing, Bitcoin was trading at $51,366 while Ether stood at $4,022.