Bitcoin Zeros in on $60,000 as Investors Flock to the Risky Asset
Bitcoin is trading to the upside on Thursday as renewed confidence in the asset has boosted the buying momentum. Another attempt to break above the $60,000 is underway with bitcoin’s price now hovering slightly above the $59,000 mark. The push towards record highs comes after two key announcements by the Federal Reserve and the investment bank Morgan Stanley.
Brighter economic outlook from the US Federal Reserve has spurred optimism across the stock market, which ricocheted in liquidity making its way back to the crypto space. Jerome Powell, Federal Reserve Chairman, announced the central bank is keeping interest rates steady near zero, while it recommits to its bond buying scheme worth $120bn per month in order to keep the financial markets flowing.
According to Chair Powell, the Fed will maintain ultra-loose monetary policy until the economic recovery is complete. Following the news, bitcoin climbed to an intraday high above $58,200 and today a new leg up pushed the price above $59,000 with an intraday high of $59,500.
Key Announcement Boosts BTC
Adding to the positive crypto growth outlook, Morgan Stanley, an institutional banking giant, announced it will soon offer clients access to three funds that enable ownership of bitcoin. The Wall Street giant will become the first large US bank to offer access to bitcoin funds. Reportedly, these funds will be available to wealthy clients only, or those who have at least $2mn in assets held by the firm. The minimum requirement is to protect investors from the downside risks to bitcoin trading. The investment in bitcoin will be limited to 2.5% of the total net worth of the accredited investors.
Increasing demand by large institutional clients is putting pressure on investment banks to add cryptocurrency services to their platforms. The step marks another milestone towards mainstream acceptance of bitcoin as a store of wealth and an investment asset class recognized by Wall Street mainstays.
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