Bitcoin (BTC) and cryptocurrencies are now experiencing high volatility. Indeed, the market seems a rollercoaster that moves between $55,000 and $60,000. On March 18, Bitcoin surpassed $60,000 for a short period of time but it was strongly rejected pushing it to $58,000 once again.
Bitcoin Gets Rejected at $60,000
Bitcoin has been rejected at $60,000 when it tried crossing that level. It immediately retraced to $58,000 despite the fact the market was expecting BTC to move to a new all-time high. In addition to it, Ethereum was also following Bitcoin’s price action. ETH moved from $1,700 to above $1,820. However, as it happened with Bitcoin, the price didn’t last long there.
During a conversation with UseTheBitcoin, Greg Waisman, the co-founder and COO of the global payment network Mercuryo, explained that prices have been driven up by several fundamental factors.
The main topic in the crypto market is now related to the institutional adoption of virtual currencies. Since March 2020, the number of new companies and investors placing their funds in BTC has massively grown.
For example, Grayscale has launched five investment products. Individual and institutional (accredited) investors can now have access to them. This would allow them to get exposure to digital assets. In the future, there might be more crypto services offered by this company. Showing that there is a strong interest in the crypto market.
For Waisman, there are other fundamental things that are worth taking into consideration. He is talking about VISA and how the company wants to make cryptocurrencies available to every single person that has a VISA card.
On the matter, Waisman stated:
“This [VISA’s crypto plans] are one of the most optimistic predictions regarding the future of cryptocurrencies, although still very reasonable, given the advances that the industry has seen over the past year, and especially the last few months.”
Moreover, another positive thing for cryptocurrencies is related to Ethereum 2.0 and its arrival in the near future. Many experts believe that it could happen sooner than anyone is expecting. In addition to it, Ethereum is also becoming the network that is hosting most of the NFTs (non-fungible tokens) that are now being sold in the crypto market.
Despite that, the market should also closely follow how ETH transactions are becoming more and more expensive over time. This is one of the most important things Ethereum 2.0 should address.