Bitcoin and cryptocurrencies have noticed a violent return to volatility over the more than two weeks, with the combined crypto market wasting and then earning around $300 billion (subscribe now to CryptoAsset
The value of bitcoin, which lately trades comfortably around the mental point of $40,000 consistent with bitcoin, remains particularly below its peak of about $65,000 set in April.
Now, amid reports that institutional investors will re-enter the bitcoin and cryptocurrency market, a new law in Germany will allow institutional investors who lately manage 1. 8 trillion euros ($2. 1 trillion) to invest in bitcoins and cryptocurrencies for the first time.
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The so-called Spezialfonds, only for institutional investors such as pension corporations and insurers, will be able to invest up to 20% of their assets in bitcoin, ethereum and other cryptocurrencies from Monday.
“Most of the budget will first remain well below the 20% mark,” Tim Kreutzmann, a crypto-asset expert at BVI, the German fund industry body, which first reported the news, told Bloomberg. as insurers have strict regulatory needs for their investment strategies. And, on the other hand, they will also have to invest in cryptography. “
Earlier this week, about $ 2. 5 billion worth of bitcoins left crypto exchanges, adding Coinbase, Kraken and Binance, according to market knowledge provider Glassnode in what it described via CNBC as “a sign that the institutional investors are pulling out. “
Some 63,000 bitcoins were transferred from major exchanges to Glassnode data.
“Trading activity has been higher in recent days than we’ve noticed recently,” Jeremy Welch, product manager of U. S. bitcoin and cryptocurrency exchange Kraken, said in comments sent via Twitter DM and predicted “greater engagement across regulated entities. . . If the narrative holds, it may turn out to be very positive for the value of the crypto space in the end. “
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The recent rise in bitcoin costs was triggered by reports that online retail giant Amazon plans to launch bitcoins and cryptocurrencies starting this year. “
“Whether [Amazon’s adoption] materializes or not, the fact is that adoption across corporations remains one of the market’s driving narratives,” Welch added.
I am a journalist with great delight in covering technology, finance, economics and business around the world. As founding editor of Verdict. co. uk, I reported