Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
Bullishness for Bitcoin continues despite its struggle to reclaim $60,000
Bitcoin dazzled us all last Saturday with a dramatic surge to new all-time highs at $61,683.86. But the market spent little time in record territory, with a sharp pullback taking prices to lows of $53,555.03 by Tuesday. Although BTC has recovered to some extent, it is now facing strong resistance at the $60,000 level.
CrossTower head of trading Chad Steinglass said some resistance is to be expected, and once these levels are surpassed, they become support. He added: “It will take a bit of chipping away to break through $60,000 with any kind of authority.”
But it’s worth taking a moment to reflect on Bitcoin’s progress. As Cointelegraph Markets analyst Michaël van de Poppe notes, BTC has accelerated from $11,000 to $60,000 in just six months. He believes $60,000 is “the final key resistance level before the next impulse wave toward $68,000 can happen.”
Speaking to Cointelegraph, eToro CEO Yoni Assia explained that a “confluence of circumstances” is contributing to the current bull run, including the economic situation in the U.S. sparked by the coronavirus pandemic. Kraken growth lead Dan Held added that BTC is currently experiencing a supercycle that could propel it all the way to $1 million and described it as a “one in 100-year moment.”
Morgan Stanley introduces Bitcoin investing for millionaire clients
The institutional banking powerhouse Morgan Stanley caused a stir this week when reports suggested it is going to give clients access to Bitcoin investing — a big nod of approval.
CNBC reported that the U.S. bank is launching access to three crypto funds… but only under specific conditions. It’s only open to clients who carry accredited investor status and hold more than $2 million in capital at Morgan Stanley — and even then, they’ll only be able to allocate 2.5% of their overall wealth to these funds.
There’s been a flurry of reaction to Bitcoin from other financial institutions this week, with Deutsche Bank saying BTC’s $1-trillion market cap has made the cryptocurrency “too important to ignore.”
According to JPMorgan Chase, retail traders are flocking to buy BTC from mainstream fintech firms. Its data suggests that consumers have purchased more than 187,000 BTC from the likes of PayPal and Square this quarter, outpacing institutions, which have snapped up 173,000 BTC over the same period.
As you’d expect, not everyone is impressed. Bank of America analyst Francisco Blanch slammed Bitcoin as exceptionally volatile, impractical and environmentally disastrous. He was especially unimpressed by how BTC can only handle 1,400 transactions per hour, while…