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This week as Bitcoin plummeted below $60k, more businesses continued to add cryptocurrencies to their accepted payment methods, including TIME Magazine. Large investment banking companies such as Morgan Stanley also continue to add cryptocurrencies to their fund.
Let’s take a closer look at this week’s crypto updates.
Bitcoin price falls below $60K — Here is Why?
On Tuesday, April 20, the Bitcoin rate again dropped below $56,000. At the time of writing, the first cryptocurrency is trading at $55 802, over the past 24 hours it has fallen in price by 2.17%. Over the past seven days, Bitcoin has lost more than 10% of its value.
The price of Bitcoin began to decline sharply after it renewed its all-time high of $64.8 thousand on April 14. Last Sunday, the quotes of the asset fell by almost 14% per hour. This led to the liquidation of positions of crypto traders for more than $9 billion.
In an attempt to explain the reasons for the decline in the Bitcoin price, well-known trader Tone Vays said that the news of the sharp drop in the hashrate of leading Bitcoin mining pools due to electricity supply problems – after explosions and floods in coal mines in several provinces in China – had created a panic among the traders, which led to the collapse of the price.
Analyst Willie Wu agreed with Vays, explaining that the Bitcoin price and its hashrate are always correlated, so the drop in the rate is linked to the blackout in China.
For his part, Head of Research at The Block, Larry Cermak, said that he believes the reason for the decline is the natural exhaustion of the market.
“Liquidity is low on weekends, markets are going up for weeks, many players are inundated with leverage, and many negative narratives converge,” he said.
Some users attributed the price drop to the news circulated by the trusted Twitter account FXHedge, which, according to its sources, stated that the US Treasury Department had accused many financial institutions of laundering money through digital currencies.
According to CoinMarketCap, the global crypto market cap is $ 2.03 trillion, a 0.85% decrease over the last day. Bitcoin’s dominance is currently 51.61%, an increase of 0.21% over the day.
TIME started accepting cryptocurrency for subscription payments
The US magazine TIME has begun accepting digital assets as a method of paying for subscriptions as part of its partnership with the Crypto.com payment platform.
Users who subscribe using cryptocurrency will have unlimited access to the content on the magazine’s website for 18 months, and will also have the opportunity to participate in events and other programs organized by TIME for subscribers.
So far, the service is only available to residents of the United States and Canada, but according to the ancient American magazine, the service will be available to residents of other countries within the next few months. It is indicated that the magazine will return 10% of the amount paid in the form of cashback when paying with Crypto.com platform tokens (CRO).
In March, TIME sold three of its own non-fungible token covers for 241 ETH ($508,869.09 at the time of writing).
In April, TIME approved Bitcoin as a payment method to create a series of educational videos about cryptocurrency for the investment company Grayscale.
Morgan Stanley confirms to offer cryptocurrency fund trading
Morgan Stanley has confirmed that it will provide Bitcoin exposure to its wealth management clients through two external cryptocurrency funds.
During the conference call on Morgan Stanley’s Q1 2021 earnings, CFO Jonathan Pruzan said that qualified investors will be allowed to invest in two passively managed cryptocurrency funds.
Pruzan added, “As interest grows, we will work with regulators to provide the services we deem appropriate.”
According to a previous report for CNBC, Morgan Stanley’s crypto fund is open to individual investors with at least $2 million in funds or investment companies with at least $5 million in funds. At the same time, the bank has set the upper limit on Bitcoin investment, allowing only individual investors to invest 2.5% of their net assets in Bitcoin.
The two funds on sale are from Galaxy Digital, and the third fund is jointly launched by the Bitcoin company NYDIG and the asset management company FS Investments.
At the end of March, Morgan Stanley filed an application with the US Securities and Exchange Commission (SEC), according to which the bank’s twelve funds will be able to invest in BTC simultaneously.
According to the documents, each of the funds referenced in the application will be able to place up to 25% of the capital in the first cryptocurrency.
That’s it for this week, thank you for reading!
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