Bitcoin has already had a blockbuster 2021, on rallying to record highs of $41,000. While the crypto has pulled lower, you will be mistaken to think the upward momentum has cooled off. As it stands, pullbacks have acted as minor corrections, from where bulls have come in and continued to push the crypto higher. Likewise, a crypto whale has made it clear that the flagship cryptocurrency has what it takes to shatter the current all-time highs.
According to the crypto whale only known as 0x_b1 on Twitter, Bitcoin will touch highs of $55,000 before the end of the year. Likewise, he expects the crypto market capitalization to touch highs of $1 trillion before making any major correction.
The ambitious $55,000 estimate does not come as a surprise as Bitcoin has persistently corrected higher on pulling back. After a recent pullback from $41,000 to about $31,000, the crypto has pulled back, with many analysts confident that the fundamentals are strong despite the dip.
One of the factors that continue to fuel the upward momentum is increased mainstream adoption. Bitcoin has grown from mystery to preferred security for gaining exposure in the burgeoning crypto space. Institutional investors are increasingly allocating capital to the flagship crypto, conversely helping fuel the upward momentum.
The emergence of Bitcoin ETFs presents institutional investors an opportunity to diversify their holdings into the crypto space. The U.S has always been numb about Bitcoin ETFs. In Canada, it’s been a different ball game.
Likewise, Canadian firm Arxnovum Investments has filed preliminary Bitcoin ETF documents. The ETF the firm intends to unleash has already received support from famed Bitcoin investors Winklevoss Twins through Gemini Trust.
Gemini Trust is to become the new ETF Fund sub-custodian to be listed on the Toronto Stock Exchange. As a sub-custodian, Gemini Trust is to offer custody services to the ETFs assets held outside Canada. For Winklevoss twins, this becomes the second ETF they have become Custodians to, having been added as 3iQ Digital Asset Management ETF last year.
Bitcoin ETFs’ unveiling is a step in the right direction that will go a long way in attracting pension schemes, mutual funds, and company balance sheets, looking to gain exposure in some of the high profile cryptocurrencies.
Tighter Crypto Regulations
Amid the growing investor interest in Bitcoin, regulatory pressure remains the biggest tailwind. European Central Bank President, Christine Lagarde, has increasingly called for tightening of rules around cryptocurrencies.
According to Lagarde, tightening of rules is needed as Bitcoin has been used to do some funny businesses in addition to money laundering. Likewise, she has been a strong proponent of international regulation of cryptocurrencies to ensure they are not used for illegal activities.
Amid the regulations drive, there has been growing interest among central banks to develop digital currencies to thwart the risks posed by cryptocurrencies. While other countries such as China have made significant strides in the development of a digital Yuan, it could take up to four years for the Eurozone to unveil a digital euro.