As always, hello and welcome to today's edition of Overbit News. As the cryptocurrency markets continue to heat up with the significant assets - Bitcoin and Ethereum, as well as several other tokens - well above their all-time highs. Though cryptocurrency enthusiasts have been cheering on the parabolic rise of Bitcoin and other projects, it seems major financial players may be finally taking note.
To kick off the week and the first day of March, Citigroup's global perspectives and solutions team issued a report on Monday, 1 March, focusing on Bitcoin. They did not mince words on the formidable hill to climb - "There are a host of risks and obstacles that stand in the way of Bitcoin progress," they wrote.
Nevertheless, these analysts wrote that they believe Bitcoin may be at a 'tipping point' to use their words, saying that Bitcoin has the potential to be the "currency of choice" for international trade. Their argument is spurred on by the recent frenzy in institutional interest, saying that "The entrance of institutional investors has sparked confidence in cryptocurrency". However, they still believe issues like security, capital efficiency, and energy usage could "limit widespread adoption".
In the end, this statement by Citigroup, one of the world's largest financial players, is undoubtedly a milestone for the cryptocurrency industry. As investments continue to pile up, it will be interesting to see who else comes out and changes their stance on Bitcoin and cryptocurrency.
In our next story about Bitcoin and Wall Street, we're focused on MicroStrategy Inc, which rose 6.6 per cent in pre-market trading on Monday after the enterprise software and Bitcoin holder announced that they paid $15 million in cash to purchase around 328 Bitcoins. The company said it charged an average price of about $45,710 per bitcoin, including fees and expenses.
This is nothing new for MicroStrategy, the first publicly traded firm to have Bitcoin on its balance sheet, but it is a significant sign of optimism for Bitcoin's macro setting. Goldman Sachs is warming up to Bitcoin, as though people weren't already optimistic about the largest cryptocurrency.
Bitcoin and other cryptocurrencies are attracting more mainstream financial firms and Wall Street players, as well as an increasing attention from government regulators, as the nascent industry's future remains a topic of heated debate.
According to a source familiar with the matter, Goldman is resurrecting a cryptocurrency trading desk. According to a source who asked not to be identified because the plans haven't been made public, the Wall Street bank will start selling Bitcoin futures and other items by mid-March, following a similar change in 2018, which was a time which also marked the "top" of the last Bitcoin market cycle.
It’s hard to say where in this market cycle we are in, but Overbit.com is here to provide you with the most up to date News in the Global Cryptocurrencies Market, and we welcome you to visit Overbit.com for all your trading needs.