Bitcoin shot down with a surging crypto adoption rate.
You could never get enough of blockchain, there is always something interesting in the market.
Even though the crypto market plunged this week, the crypto adoption rate continued to grow globally.
The discovery of the latest COVID variant and ongoing supply-chain woes caused enough trouble taking the market down, with Bitcoin tumbling nearly 25% to a low of roughly $42,000 over the weekend before recovering to $51,000 on Tuesday. However, as is typically the case, the long view is much brighter: crypto acceptance is increasing worldwide as individual traders and huge financial institutions increase their involvement. Let’s get started
- According to a recent survey, over a quarter of American investors currently possess Bitcoin. Nearly 80% of respondents would like to invest in Bitcoin through an exchange-traded fund (or ETF) conducted by crypto fund behemoth Grayscale. ETFs are extremely popular investment instruments for a wide range of asset classes. When BTC futures ETFs debuted in September in the United States, they set new trading records. However, the SEC has yet to authorize a “spot BTC ETF,” which would hold the cryptocurrency directly. (This week, Fidelity became the latest company to create a spot BTC ETF in Canada.)
- In Brazil, Mercado Pago, a popular fintech app with 28 million users, will buy, sell, and hold crypto soon. Brazilians have a particular interest in crypto as the inflation in the nation is ever surging; as of October, it is 10%. The maximum supply of Bitcoin is 21 million, which is designed to resist inflation becoming a popular hedge among individuals and institutions.
- Stock exchanges globally are trying to incorporate crypto. The chair of South Korea’s stock exchange has expressed its thought to explore ways to embrace virtual assets in the domestic exchanges as there has been a spike in crypto use. On the other hand, the chairman of Switzerland’s stock exchange is exploring support for NFT trading. The FTSE, the U.K.’s benchmark stock market index, is on the verge of creating a crypto market index, while back in the U.S., Goldman Sachs and other Wall Street banks are exploring offerings based on Bitcoin-backed loans. MassMutual, an insurance giant, and Wisdom Tree, an investment giant, are creating systems that allow investment advisors to purchase cryptocurrency on behalf of their customers.
What’s at stake… Despite the weekend’s drop, Bitcoin — and crypto markets in general — are still at all-time highs. In comparison to the S&P 500, which is up 25% for 2021, Bitcoin is up roughly 80%. (as of Tuesday). While there is still much to learn about COVID’s Omicron version, White House advisor Dr. Anthony Fauci rated early severity data as “encouraging.”