Bitcoin Jumps to Its High for the Year
Bitcoin has reached its 2022 high, helping to buoy the cryptocurrency market as a whole. Bitcoin has rallied across the previous week, moving above the $47,000 level. This upward trend is partially the result of the liquidations of short positions in cryptocurrencies.
All in all, Bitcoin transaction volume moved beyond the $120 billion threshold in the previous 24 hours. It is also worth noting the top altcoins soared higher as a result of Bitcoin’s ascension. The question is whether the spike should give cryptocurrency investors the green light to add to their crypto positions or if it is a short-term bump that is not indicative of an overarching trend.
The Banking Sector is Helping to Catalyze Crypto
Cryptocurrencies are moving higher for several reasons. However, one of the top reasons for crypto’s ascension is the growing interest from financial institutions. As time progresses, that many more banks and other financial institutions are announcing initiatives focused on the trading and use of various cryptocurrencies.
In particular, Goldman Sachs is especially bullish on crypto, going as far as reshaping its homepage to highlight crypto, digitalization and even the metaverse. The investment bank’s emphasis on crypto has generated that much more attention from the investing community as well as those who use social media. Plenty of social media users were quick to highlight how Goldman Sachs’ brass initially adopted the position that Bitcoin and other cryptocurrencies should be considered legitimate asset classes.
Goldman Sachs isn’t the only financial institution scooping up cryptocurrencies. The largest bank in Israel, Leumi, recently announced it will be the nation’s first financial institution to provide crypto trading opportunities to its clients. This is an important progression especially when you consider the fact that the nation lacks a regulatory framework for these digital stores of value. The country’s financial institutions’ willingness to embrace crypto is an indication that there is growing demand for the digital currencies throughout the lone democracy in the Middle East.
El Salvador’s Bitcoin Bond
El Salvador, a nation that shifted its entire currency into Bitcoin in what might go down as one of the savviest monetary policy decisions in world history, is also in the news as its president has announced the first-ever Bitcoin bond. El Salvador will be the first nation to issue a bond backed by Bitcoin to finance the construction of a Bitcoin City.
The aim of the initiative is to use volcanoes’ geothermal power to fuel Bitcoin mining in addition to local infrastructure. This strategy has the potential to prove quite important as there is increasing pressure on Bitcoin miners to use greener, more sustainable forms of power to mine crypto.
The Private Sector is Riding the Crypto Train to Riches
As time progresses, that many more businesses are debuting new crypto features. As an example, the Luna Foundation Guard has invested in excess of a billion dollars in Bitcoin to bolster the sustainability of its Terra stablecoin. This group has also promised to allocate $10 billion of Bitcoin for reserves.
LG Electronics, based in South Korea, recently announced it will boost its business in the blockchain and crypto sectors. The company’s aim is to develop a crypto exchange market along with software powered by the blockchain.
Will Bitcoin Continue to Rise?
Take a look at Bitcoin’s recent chart and you will find it moved through the upper section of its latest plateau. If the crypto’s upward momentum continues, its price might move all the way up to $48,200 before encountering resistance. This benchmark overlaps with Bitcoin’s moving average in the previous 200 days. Alternatively, there is also the potential that investors who entered the crypto space while Bitcoin ascended to take profit off the table, potentially establishing a floor of $45,000.