Bitcoin rises 5% to $58,000 after Fed keeps policy steady and Morgan Stanley offers crypto funds

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Bitcoin has risen around 1,000% in the last year

  • The bitcoin price rose sharply overnight to close to $60,000 before slipping back to around $58,000.
  • The Fed stressed it would keep monetary policy loose, while stimulus checks are being sent out.
  • Morgan Stanley plans to give its rich clients access to bitcoin as institutional interest grows.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin flirted with the $60,000 barrier again on Thursday after a sharp fall from record highs earlier in the week, with stimulus and institutional interest boosting the world’s biggest cryptocurrency.

The bitcoin price (BTC) was up 5.3% to $57,874 at 10.30 a.m. EDT, having earlier topped $59,500.

That was off a high of close to $62,000 touched on Saturday, but well up from a low of below $54,000 hit on Tuesday. Bitcoin has risen around 1,000% in a year.

Ethereum’s cryptocurrency ether (ETH) rose to $1,850 on Thursday before slipping back to around $1,790, up 1% for the day.

Edward Moya, senior market analyst at Oanda, said Wednesday’s Federal Reserve statement had helped the bitcoin price.

The Fed said it planned to keep supporting the economy until employment and inflation picked up and foresaw no interest-rate rises until 2024.

Huge amounts of stimulus have been a key driver of the bitcoin boom, and “an accommodative Fed until the job is done should keep the world’s largest cryptocurrency strongly supported,” Moya said.

Justin d’Anethan, head of exchange sales at Diginex, said stimulus checks being sent out to Americans was another factor.

More interest from big institutions also appeared to lift the coin, with Morgan Stanley planning to offer its rich clients access to bitcoin funds, according to CNBC.

D’Anethan said: “It seems that people are buying globally, nudged by Meitu, a Hong Kong listed company, buying yet another $50 million worth of crypto and, overnight, the news that Morgan Stanley will enable its wealthier clients to access BTC funds.”

Adrian Patten, chair of currency infrastructure-provider Cobalt, said: “With such high prices, both liquidity and volumes are increasing and catching up with the more traditional asset classes.”

Other market participants are more skeptical, however, with Bank of America saying on Wednesday that bitcoin does not provide diversification or inflation protection.

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Bitcoin rises 6% to flirt with $60,000 after Fed keeps policy steady and Morgan Stanley offers crypto funds

GettyImages 1231620194
Bitcoin climbed on Thursday morning

  • The bitcoin price rose sharply overnight to close to $60,000 before slipping back to around $58,300.
  • The Fed stressed it would keep monetary policy loose, while stimulus checks are being sent out.
  • Morgan Stanley plans to give its rich clients access to bitcoin as institutional interest grows.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin flirted with the $60,000 barrier again on Thursday after a sharp fall from record highs earlier in the week, with stimulus and institutional interest boosting the world’s biggest cryptocurrency.

The bitcoin price (BTC) was up 6.3% to $58,280 at 7.20 a.m. EDT, having earlier topped $59,500.

That was off a high of close to $62,000 touched on Saturday, but well up from a low of below $54,000 hit on Tuesday. Bitcoin has risen more than 1,000% in a year.

Ethereum’s cryptocurrency ether (ETH) rose to $1,850 on Thursday before slipping back to around $1,810.

Edward Moya, senior market analyst at Oanda, said Wednesday’s Federal Reserve statement had helped the cryptocurrency market.

The Fed said it planned to keep supporting the economy until employment and inflation picked up and foresaw no interest-rate rises until 2024.

Huge amounts of stimulus have been a key driver of the bitcoin boom, and “an accommodative Fed until the job is done should keep the world’s largest cryptocurrency strongly supported,” Moya said.

Justin d’Anethan, head of exchange sales at Diginex, said stimulus checks being sent out to Americans was another factor.

More interest from big institutions also appeared to lift the coin, with Morgan Stanley planning to offer its rich clients access to bitcoin funds, according to CNBC.

D’Anethan said: “It seems that people are buying globally, nudged by Meitu, a Hong Kong listed company, buying yet another $50 million worth of crypto and, overnight, the news that Morgan Stanley will enable its wealthier clients to access BTC funds.”

Adrian Patten, chair of currency infrastructure-provider Cobalt, said: “With such high prices, both liquidity and volumes are increasing and catching up with the more traditional asset classes.”

Other market participants are more skeptical, however, with Bank of America saying on Wednesday that bitcoin does not provide diversification or inflation protection.

Read the original article on Business Insider

78% of institutional investors are not planning on investing in cryptocurrencies, though a majority say crypto is ‘here to stay,’ JPMorgan survey finds

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  • A JPMorgan survey of 3,400 institutional investors shows a majority do not plan to invest in or trade cryptocurrencies. 
  • However, 58% of investors surveyed said cryptocurrencies are “here to stay.”
  • The survey is the latest look into institutional sentiment on cryptos as more firms enter into the space.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

An overwhelming majority of institutional investors surveyed by JPMorgan said they do not plan to start investing or trading cryptocurrencies, though 58% said crypto is “here to stay.”

In a survey of roughly 3,400 investors representing 1,500 institutions around the work, 11% of investors said their firm either trades or invests in crypto, while 89% said their firm doesn’t.

Out of the investors who answered “no,” 78% of investors said it’s “not likely” their firm will trade or invest in crypto, while 22% answered “likely.”

The survey sheds a light on the state of institutional investor interest in cryptocurrencies. While bitcoin’s parabolic rise has garnered the attention of institutional and retail investors alike, the institutional community remains somewhat divided on the future of crypto. 

When asked: “What is your opinion on Crypto?” 14% answered “probably rat position squared (something to avoid,)” while 7% said it “will become one of the most important assets.” 58% of investors said it’s “here to stay,” and 21% answered that crypto is just a “temporary fad.” 

Almost all investors (98%) said they believe fraud in the crypto world is “somewhat” or “very much prevalent.” 

Multiple well-known Wall Street behemoths are taking in interest in cryptocurrencies and bitcoin. Most recently, a unit of Morgan Stanley said it’s exploring whether to invest in cryptocurrencies, according to Bloomberg. Morgan Stanley also has a 10.9% stake in MicroStrategy, which gives the bank indirect exposure to 7,681 bitcoin. 

BlackRock has authorized two of its funds to invest in bitcoin futures, while JPMorgan strategists have a theoretical price target of $146,000 for bitcoin.

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