Positive developments on all fronts – Bitcoin aims for 60,000 again
The signs in and around the crypto market are positive, giving investors hope for a continuation of the record run soon.
Optimism has returned to the crypto market in the last two days after the US Federal Reserve forecast an improvement in the general economic situation and hinted at a Crypto Genius possible increase in the key interest rate in 2022.
As data from Cointelegraph Markets and TradingView shows, Bitcoin was still below US$57,000 prior to the Federal Reserve’s announcement, after which it went on to an interim daily high of US$58,243 following the central bank’s comments.
The optimism surrounding the crypto market leader was fuelled by the recent announcement by major bank Morgan Stanley that it intends to open Bitcoin to wealthy investors from April. Three investment funds, which can be accessed via the bank’s asset management, are to serve as vehicles for this.
Moreover, the long-term price trend also suggests that the current record run is far from over. As PlanB, inventor of the popular Stock-To-Flow (S2F) forecasting model, says, Bitcoin will „not stop yet“ even at 100,000 US dollars. According to his calculations, the average price for the current cycle is 288,000 US dollars, whereby a possible record high would be significantly higher again.
Financial markets gain
The stock markets were also slightly boosted by the positive foresight of the US central bank, as can be seen from the fact that the important indices were able to close higher.
The S&P 500, Dow Jones and NASDAQ, for example, gained 0.29%, 0.58% and 0.40% respectively. Meanwhile, 10-year US Treasury bonds gained 1.23% to close at 1.641.
Altcoins get boosted by Grayscale
Some altcoins also benefited from the support of the influential crypto asset management firm, as it added five more crypto projects to its investment offering. As a result, it is now possible to invest in the Basic Attention Token (BAT), Chainlink (LINK), Decentraland (MANA), Filecoin (FIL) and Livepeer (LPT) via Grayscale.
Interested? https://t.co/YfK2YUKgCj pic.twitter.com/jLqDph4MEH
– Michael Sonnenshein (@Sonnenshein) March 17, 2021
This announcement alone saw the altcoins in question make significant gains, with Livepeer the clear winner of the day with a whopping 260% gain. The price of the associated cryptocurrency LPT was thus able to catapult from 5.53 US dollars to a new record high of 20.21 US dollars.
At the time of going to press, FIL has gained 40.7 % to reach a price of 89 US dollars, while MANA has climbed 7.3 % to 1.01 US dollars. BAT also achieved a new record high through a growth of 44 %, which is at 1.36 US dollars.