Bitcoin billionaires, such as Winklevoss brothers and Mark Cuban, have created a narrative in the Wall Street that Bitcoin is the need of the hour. Inflow of institutional money is paving the path for crypto banking.
Role of Whales in Price Movement
The top-ranked cryptocurrency has been fluctuating between $35,000 and $40,000 since last few days. There are few whales that are responsible for sudden down falls as they only come in the market to take benefit of bullish rallies. But the majority of big crypto players are holding the high-flying crypto for long run.
Additionally, it should also be noted that Bitcoin is the only coin in the market that drive the price values of other cryptocurrencies. When Bitcoin plunged momentarily from $42,000, altcoins also went bearish. So, the leading digital currency is the only source of inspiration to billionaires and institutions because it can be used as hedge against economic uncertainty.
However, the regulators in some countries are still hesitant in recognizing the high potential of Bitcoin. They think it is volatile and fluctuation is its nature which is not a good thing. When the flagship coin plunged suddenly after claiming the all-time high, the Financial Conduct Authority (FCA) said the people should understand the products before investing in them. The UK regulator warned users, referring to cryptocurrency, that they “should be prepared to lose all their money.”
The crypto markets recovered and crypto market analysts made positive remarks about it. However, they believe once the value will touch $40k, the next goal will be determined.
The coming stimulus package from Biden’s team will also boost the crypto markets. The perspective of big investors towards Bitcoin has changed dramatically and there are chances that they can use it as hedge instrument against expected inflation and devaluation of the US dollar.
Following the rising trend of crypto technology, the Office of the Comptroller of the Currency (OCC) has approved various requests for crypto-focused banks. For instance, Avanti and Kraken received approval from the regulators to run crypto-based banks. Anchorage Digital Bank is the latest one that got a license from the OCC for digital assets bank. This was a good gesture from the US regulator for the crypto industry. At current, major economies of the world are designing a clear regulator sandbox to deal with cryptocurrency.