Signs of an increasing embrace among the financial industry has pushed Bitcoin to new highs, with the digital currency approaching $50,000 for the first time ever, before falling back down.
A week after Tesla reported its $1.5 billion Bitcoin purchase, the asset continues to invade traditional finance circles, including news that Morgan Stanley might be considering an investment into Bitcoin. Canada also agreed to the first North American Bitcoin ETF.
With leaders like Elon Musk and top banks joining in, this gives fresh ammunition to Bitcoin’s rise. The asset neared $50,000 over the weekend before pulling back. Prices are higher by 40% in February, and were setting at around $46,800 at the time of this writing.
Edward Moya, senior analyst at Oanda Corp says that “This is not the first large weekend move Bitcoin has made and the next few days could easily see crazy swings.”
While the price has been trending up, the crypto could be another example of speculative frenzy that define this market — along with other investments like cannabis companies.
But on the other hand, maybe these increases are nothing more than a market reacting to a major shift happening now, with hints of more heavyweights getting into the market. During an interview recently, Co-President of JPMorgan Chase, Daniel Pinto, said that demand is not there on Bitcoin, but he is positive that will change.
Plus, a unit of Morgan Stanley is exploring whether Bitcoin would be a good option for its investors, according to people close to the unit. Moving forward with investments would need approval by the company and regulators.
“With every announcement like the one issued by BNY Mellon, more institutions are starting to use these digital assets,” said Patrick Campos, strategist at Securrency, a developer of blockchain regulatory technology.
“Tesla’s announcement will encourage other large institutions to accept crypto more and more,” he said.