Bitcoin price surges despite being targeted by the US Federal Reserve again
BTC's gains continue to mount, with the asset booking 30-day profits of 56%.
- Banking giant Wells Fargo is all set to release a new Bitcoin fund.
- Institutional investor BlackRock recently revealed that it has a AUD$540 million stake in 2 major Bitcoin mining firms.
- BTCs correlation with the S&P 500 has continued to hover around its all time highs.
The last 24 hours have seen Bitcoin, the world's largest cryptocurrency by total market capitalisation, gain a little over 6% in value. As a result, BTC has been able to break past the all-important AUD$66,000 while currently trading at the same level.
This latest upsurge can, in part, be attributed to news of American banking behemoth Wells Fargo announcing that it had entered into a partnership with NYDIG so as to release an all-new BTC fund. Not only that, the market seemed to remain completely unfazed, despite Minneapolis Federal Reserve President Neel Kashkari recently taking a shot at the digital asset industry, stating: "So far, what I've seen is […] 95% fraud, hype, noise and confusion."
In addition to this, Kashkari also pointed a direct finger at Bitcoin, claiming that the currency has largely been used for illegal funding activities. Lastly, despite the Federal Reserve showcasing its intent to unwind its USD$120-billion monthly purchases of Treasury and mortgage-backed securities, the crypto market has continued to remain strong, another bullish indicator which suggests that BTC may be able to break past the $50K threshold soon.
BlackRock reveals massive stake in Bitcoin mining firms
As per a set of filings submitted with the United States SEC, it recently came to light that USD$9 trillion multinational investment manager BlackRock has been making sizeable crypto moves, recently investing in 2 major publicly traded Bitcoin mining firms.
To elaborate on the matter, BlackRock currently has a sizeable 6.71% stake in Marathon Digital Holdings (MARA) as well as a 6.61% stake in Riot Blockchain, with both investments estimated to be worth around AUD$540 million approximately.
BTC and S&P 500 correlation continues to remain high
As per data released by analytics firm Santiment, the last 30 days have seen Bitcoin showcase an extremely high level of correlation with the stock market, while exhibiting an inverse correlation with gold. With inflation fears rising across the globe, it will be interesting to see how long this phenomenon continues to be witnessed, especially as people continue to clamour for long-term stores of value.
Disclosure: The author owns a range of cryptocurrencies at the time of writing