The weekend saw Bitcoin climb back above $50K. Though the period wasn’t action-packed, two main developments signaled a new bullish wave. Americans could in the next few weeks receive stimulus checks of $1,400 with the bill passed during the weekend.
Additionally, having Bitcoin in company portfolios could be a trend catching on in Asia as a leading Chinese app developer announced it bought Bitcoin worth $22M over the weekend.
The approval of the $1.9 Trillion stimulus package by the U.S senate has been the major talking point. Following its approval on Saturday, experts expect President Biden could sign this into law as soon as the end of the week.
If so, checks could begin reaching beneficiaries by the end of the month. In the past, some of these checks have been forwarded straight into Bitcoin. And why not? Those who stretched their last check saw its value more than quadruple.
With the interest in Bitcoin skyrocketing, the number of new investors will reach never-before-seen levels. Encouraged by the recent bullish wave, and the new interest from institutions such as Tesla and Square, many are more confident buying Bitcoin as a form of investment. And has always been with Bitcoin, higher demand means higher prices.
BTCUSD Chart By TradingView
Meitu, a leading software company listed on the Hong Kong exchange over the weekend, announced that it had bought 15,000 Ethereum and 379 Bitcoin. These cryptos were bought under its crypto investment plan which it further says could reach as high as $100M.
Cai Wensheng, the chairman and founder has been a long-time supporter of blockchain and cryptocurrencies. A few years ago, he made public that he had accrued 10,000 BTC, a target he might now set for his company. In the official announcement of the purchase, the company mentioned that blockchain is still in its infancy and it believed it could disrupt the financial and technology industries.
“… Against this backdrop, the Board believes cryptocurrencies like Bitcoin and Ethereum have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash in treasury management,”
Institutional buying of Bitcoin has been a growing trend, predominantly in the US. Tesla has been the main force with MicroStrategy, Square, and Grayscale being notable others. If the same trend catches on in Asia, the competition and increased demand would trigger stronger bullish pressure.
At the time of writing this, Bitcoin is exchanging for $53,750 with a 7% positive change in the last 24 hours.
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