Crypto Staging A Stunning Breakout

Crypto has staged a stunning breakout on Monday morning, defying the recent gloom for investors.

At the time of writing bitcoin (BITCOMP) has surged from trading around $34,000 over the weekend to now above $39,000. The cryptoasset traded as low as $29,504 on Wednesday and is now up 32%.

Cryptocurrency, Concept, Altcoins

Pixabay

Ethereum similarly has taken off. Having reached a low of $1,730 on Tuesday, ETH is now trading around $2,385 - a 38% increase (ETH-X). 

The bullish trading comes on the back of news over the weekend that Amazon (AMZN) is looking to expand its cryptoasset presence, with the news it was hiring a cryptocurrency and blockchain lead.

Amazon’s tentative move has sent shockwaves through crypto markets. The firm is the largest ecommerce, web hosting and streaming provider in the world. In its full-year results for 2020 it recorded some $386 billion of revenue. 

The implication some of this revenue could be captured by crypto payments in future could be profound for markets. While too early to definitively say, the Amazon announcement could soon bear similarity to the breakout in prices caused by the announcement of PayPal (PYPL) that it would accept bitcoin on its platform in October 2020. 

When PayPal made its announcement, bitcoin languished around $11,700, but the ensuing bull run took the cryptoasset to an all-time high of $63,346.

JPMorgan gives clients access to crypto

Investment bank JPMorgan (JPM) has become the first major mainstream financial institution to offer clients access to cryptoassets. 

Advisors at the firm can now pick from five different cryptoasset products, provided by Grayscale Investment and Osprey Funds.

However, according to reports from Business Insider, advisors can for now only execute trades on behalf of clients that ask for cryptoasset exposure, they cannot recommend products without prompting.

While institutional adoption of cryptoassets is gaining ground, JPMorgan remains the only major institution to adopt options for private clients. Goldman Sachs (GS) offers crypto futures trading to institutional clients only.

1 2
View single page >> |

Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.