Why Bitcoin is heading for $6000: 'Institution after institution lining up'

07 May, 2019
by Jelmer van der Dussen
Bitcoin
Why Bitcoin is heading for $6000: 'Institution after institution lining up'

Bitcoin is on its way to $6000 today, climbing 5% and now trading at around $5950. The price jump of BTC comes a day after news got out that Fidelity will start trading Bitcoin 'in the next few weeks'.

Fidelity is a $7 trillion asset manager that is working with big institutional clients and is aiming to open up the cryptocurrency markt for the wealthy by starting to buy and sell Bitcoin. In an interview with Bloomberg, managing partner of Kenetic Capital Jehan Chu says that this could be one of the reasons for the rising Bitcoin price. But...

"Fidelity alone doesn’t move the entire needle, but Fidelity with E*Trade and Ameritrade and Robin Hood and a whole host", Chu said. "You’re seeing a critical mass of these types of asset managers and brokers providing retail exposure and retail access to crypto."

"Bitcoin is testing new near-term highs because the overall institutional involvement is becoming stronger and stronger", Chu continues. "We’re just seeing institution after institution lining up to the thesis of digital currency, and Bitcoin is the standard bearer."

Fidelity published a research recently, in which it stated that 47% of the institutional investors think cryptocurrencies are worth investing in.

Bitcoin is not the biggest gainer in today's market, with Ethereum rising 10% following the rumor that the US Commodity Futures Trading Commission (CFTC) may approve an ETH futures contract, as long as it complies with regulatory conditions.

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