Bitcoin price rises further on the heels of UAE adoption news
Bitcoin seems to be gaining mainstream acceptance within the United Arab Emirates (UAE) at a rapid rate.
- One of MicroStrategy's subsidiaries has secured a AUD$273 million (US$205 million) loan for acquiring additional BTC.
- A Dubai-based educational institution is now allowing its students to pay their tuition fees in Bitcoin.
- The UAE government recently issued its prestigious virtual asset licence to global trading platforms Binance and FTX.
Bitcoin, the world's largest cryptocurrency by total market capitalisation, has continued to push ahead with its recent positive financial momentum. The digital currency has risen from a price point of AUD$50,000 to approximately AUD$64,000 over the past month. As a result, BTC is exhibiting a 30-day gain ratio of over 25% while trading at a price point of AUD$62,891.
The ongoing ascent comes at a time when MacroStrategy, a subsidiary of Michael Saylor-led business intelligence firm MicroStrategy, announced that it will be acquiring more Bitcoin after having successfully obtained a loan for banking giant Silvergate. The firm has secured a US$205 million advance from the trad-fi entity, with proceeds of the sum being used to accrue more Bitcoin and reimburse any interest related to the loan.
MicroStrategy entered the crypto fray back in mid-2020 and made a US$250-million investment towards Bitcoin. Since then, the firm has continued to lap up the flagship digital asset at a furious pace. The company's coffers currently consist of 125,051 BTC, touted to be worth more than $6 billion at current prices.
Silvergate has continued to help a lot of crypto companies over the past couple of years and provided them with substantial capital. For example, late last year, the bank provided American mining company Marathon Digital with a credit line of over $100 million. The financial institution also entered into a long-term partnership with Crypto.com back in November of 2021, allowing the exchange to start offering institutional clients with USD-based deposits and withdrawals.
Dubai educational institution starts accepting crypto payments
UAE-based Citizens School announced earlier this week that it will allow its students to pay their tuition fees in Bitcoin or Ethereum. The payments will be processed via an unknown financial services provider. However, reports say that the final sum will be received by the school in United Arab Emirates dirhams (AED). On the development, the founder of the institution, Dr Adil Alzarooni, was quoted as saying:
"We look forward to enhancing the role of young generations in achieving the UAE's digital economy. As more people embrace the era of digitalisation, today's children will become the entrepreneurs and investors of tomorrow."
Since the start of the year, the UAE has continued to spur the adoption of digital currencies within its borders. The Arab giant recently issued its highly coveted virtual asset licence to cryptocurrency exchanges Binance and Samuel Bankman-Fried-led FTX. Local media outlets have noted that lawmakers are currently in the process of drafting out a series of recommendations in relation to the region's flourishing non-fungible token (NFT) market as well.
What lies ahead for Bitcoin?
With BTC flirting with the AUD$64,000 mark over the last couple of days, analysts believe that the asset has cleanly cleared the all-important AUD$60,000 price resistance. In fact, many pundits are of the view that the coming few days could see Bitcoin scaling up to the AUD$76,000 mark, barring any major roadblocks. As things stand, Bitcoin's dominance index has risen to 42.1% while the total market capitalisation of the crypto industry now lies at approximately AUD$3 trillion.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.