Cryptocurrency adoption within traditional financial institutions has been expanding in recent months. However, crypto prices haven’t responded to the numerous favorable news in the market.
Cryptocurrency adoption continues to grow
Over the past year, people’s attention in the cryptocurrency market has been centered on price rises, and understandably so. Bitcoin shot up by nearly 200 percent from its 2017 peak to hit a new all-time high above $65k, while Ether climbed beyond $4,500 in a protracted bull cycle.
However, there have been other major changes in the crypto realm, particularly the involvement of traditional financial institutions. Over the past few months, various traditional financial institutions have entered the crypto arena, providing crypto-related services to its clients.
JPMorgan, Goldman Sachs, and Morgan Stanley have already significantly invested in the market. Other big banks looking to move into the industry include Citigroup, UBS, Cowen and Deutsche Bank. BNY Mellon, the oldest bank in the US, has already joined the market and this week increased its position.
BNY Mellon is set to offer bitcoin custody services to its clients via its new digital asset subsidiary in Dublin. The Digital Innovation Hub will function as a custodian for cryptocurrencies such as Bitcoin and other digital assets including non-fungible tokens (NFTs) (NFTs). It will also provide custody services to central bank digital currencies (CBDCs) when they become accessible.
Argentina is fast becoming a hub for bitcoin mining activities. The populace is taking advantage of substantial electricity subsidies by the government to mine Bitcoin and other cryptocurrencies. This has supposedly grabbed the interest of huge mining businesses such as Bitfarms, who are planning to set up shop in the South American country.
With Iran restricting crypto mining activity until September and lingering restrictions in China and Argentina, its inexpensive electricity could become one of the main cryptocurrency mining countries.
Crypto prices have stagnated
Despite the various positive news from the cryptocurrency sector, prices have stagnated. Bitcoin, the leading cryptocurrency, is up by 0.2 percent over the past 24 hours. It is still striving to achieve the $40k level.
Ether is faring better, with the ETH/USD pair up by 3.6 percent over the past 24 hours. However, it is currently trading around $2,500 and might need a major bullish rise to reach $3,000 again. In general, all the coins in the top ten are trading in the green. However, the bullish momentum needs to be stronger if the market is to erase the losses of the past several weeks.
Pretty sure that's because the type of adoption that people do is the type of market you can find with stock markets. If a certain location, say the Bitcoin Cash City in Australia, has money flowing to BCH and never flowing back to AUD and said Bitcoin Cash City is growing larger, then that's actual adoption. The price only slowly goes high as more people buy it and never sell it back.
Except there are speculators that ruin the slowly increasing price, running stock market predictions on things.