Signs of a widening embrace across the financial services industry sent bitcoin to new heights, with the cryptocurrency closing in on US$50,000 for the first time before falling back.
A week after Tesla announced its US$1.5 billion investment in bitcoin, the digital asset continues to make inroads into traditional finance, including news that an investment unit of Morgan Stanley is considering whether to bet on bitcoin. Canada also approved the first North American bitcoin exchange-traded fund.
And there is evidence that more companies are beginning to add services for cryptocurrencies — an asset class that is still lightly regulated and controversial among policymakers. On Thursday, BNY Mellon said it formed a new team that is developing a custody and administration platform for traditional and digital assets. Mastercard Inc has said it will begin allowing cardholders to transact in certain cryptocurrencies on its network.
The combination of luminaries like billionaire Elon Musk and powerhouse banks is adding fresh ammunition to bitcoin’s meteoric gains. The cryptocurrency neared US$50,000 in weekend trading before retreating. Prices are up 40 percent this month, and were at about US$46,800 as of 11am in Hong Kong yesterday.
“The key for bitcoin’s path higher is to win over more corporate endorsements,” Oanda Corp senior market analyst Edward Moya said. “Bitcoin is no stranger to massive weekend moves and the next several days could easily see some wild swings.”
There remains a fierce debate over whether bitcoin is a legitimate asset with any real purpose or value. The token has been derided for its role in money laundering and scams, and recently Nassim Nicholas Taleb, author of The Black Swan, said he is getting rid of his bitcoin. A currency is never supposed to be more volatile than what you buy and sell with it, Taleb said on Twitter, adding that you cannot price goods in the cryptocurrency. “In that respect, it’s a failure (at least for now).”
Even so, the price trend has been up, and bitcoin stands as another example of the speculative excesses that are defining this bull market — along with penny stocks and cannabis companies.
There are hints that more Wall Street heavyweights could dip into the crypto market. In an interview with CNBC, JPMorgan Chase & Co co-president Daniel Pinto said that client demand is not there yet on bitcoin, but he’s certain that’ll change.
Bloomberg reported that Counterpoint Global, a unit of Morgan Stanley Investment Management, is exploring whether the cryptocurrency would be a suitable option for its investors, according to people with knowledge of the matter. Moving ahead with investments would require approval by the firm and regulators.
“With each major announcement like the one BNY Mellon made, other institutions are spurred to more rapid adoption and deployment of digital assets,” Patrick Campos, chief strategy officer at Securrency, a developer of blockchain-based financial and regulatory technology, said on Friday.
“Tesla’s recent announcement will embolden other large corporates and institutions to accept crypto as not just a worthy asset class, but perhaps even an essential one,” he said.
Sweeping policy changes under US Secretary of Health and Human Services Robert F. Kennedy Jr are having a chilling effect on vaccine makers as anti-vaccine rhetoric has turned into concrete changes in inoculation schedules and recommendations, investors and executives said. The administration of US President Donald Trump has in the past year upended vaccine recommendations, with the country last month ending its longstanding guidance that all children receive inoculations against flu, hepatitis A and other diseases. The unprecedented changes have led to diminished vaccine usage, hurt the investment case for some biotechs, and created a drag that would likely dent revenues and
Global semiconductor stocks advanced yesterday, as comments by Nvidia Corp chief executive officer Jensen Huang (黃仁勳) at Davos, Switzerland, helped reinforce investor enthusiasm for artificial intelligence (AI). Samsung Electronics Co gained as much as 5 percent to an all-time high, helping drive South Korea’s benchmark KOSPI above 5,000 for the first time. That came after the Philadelphia Semiconductor Index rose more than 3 percent to a fresh record on Wednesday, with a boost from Nvidia. The gains came amid broad risk-on trade after US President Donald Trump withdrew his threat of tariffs on some European nations over backing for Greenland. Huang further
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