Bitcoin price recovers as Peter Thiel of PayPal fame enters the market

Posted: 12 May 2021 4:01 pm

Bitcoin's dominance index is in danger of slipping below the 40% mark for the first time since mid-2018

  • Experts believe that BTC may be able to break past the AU $320k threshold in the next 5 years.
  • The CBOE has filed an application with the US SEC in order to list Fidelity's Bitcoin ETF offering.
  • Peter Thiel announces $10 billion of funding for a new crypto exchange, partnering with EOS creators

After dipping to a relative low of AU $70,250 over the last 24-hour trade cycle, Bitcoin, the world's largest cryptocurrency by total market capitalization, is showcasing strong signs of recovery, currently exhibiting daily gains of 4%. At press time, the premier digital currency is trading at AU $73,200.

Despite its ongoing rise, Bitcoin's market dominance index seems to be fading fast, especially as Ether continues to surge to new all-time high levels, seemingly every other day. In this regard, it should be pointed since mid-February, BTC's total dominance ratio has slipped all the way from 61.32% to just over 40%. Over the same time window, Ether's dominance has risen from 14% to over 19%.

How to buy Bitcoin

Also, after exhibiting tremendous positive monetary momentum at the start of the year, Bitcoin's value seems to have plateaued somewhat in recent weeks, especially after the digital currency flirted with the AU $83,000 range last month, only to correct and fall back to around the AU $60,000 mark. Even then, Mark Yusko, the chief investment officer for hedge fund Morgan Creek Capital, believes that within the next five odd years, a single BTC token could be worth $250,000 (AU $320k), adding:

"Bitcoin is going to become the base layer protocol for the internet of value. It's just about network adoption and increased usage. This is the fastest network in history to a trillion dollars of value. What people miss is this is a technological evolution of computing power that isn't going away."

Peter Thiel partners and to launch exchange, the firm behind the EOS blockchain and cryptocurrency, have announced plans for Bullish, a new cryptocurrency exchange supported by $10 billion of funding. The exchange is aimed at both institutional and retail investors, offering traditional centralised exchange services combined with a raft of DeFi market services. The $10 billion of funding looks set at bootstrapping liquidity for the platform without the need for banks or traditional finance.

Peter Thiel, who has a stake in as well as PayPal and Venmo which both entered crypto recently, will serve as a senior advisor alongside other notable investors Alan Howard, Richard Li, and Christian Angermayer.

CBOE files for another Bitcoin ETF application

As per a recent report, the Chicago Board Options Exchange (CBOE) has submitted a Form 19b-4 request with the United States Securities and Exchange Commission (SEC) so as to list Fidelity's Wise Origin Bitcoin Trust Bitcoin ETF — an offering that was submitted to the SEC by the asset manager a couple of months ago.

The SEC is required to issue its first response in relation to the aforementioned request within a period of 45 days, after which the regulatory body will have to extend or reject the application altogether. In all, the SEC has a total of 240 days (or eight months approximately) in order to evaluate Fidelity's Bitcoin ETF application.

Lastly, it bears mentioning that in addition to Fidelity, a number of other major firms — such as VanEck, Wisdom Tree, SkyBridge Capital, and Mike Novogratz-led Galaxy Digital — too have submitted Bitcoin ETF applications with the SEC.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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