Bitcoin’s price is rising in line with the stock market… what does this mean?
- On-chain data suggests whales have continued to accumulate Bitcoin heavily over the last couple of months.
- Berkshire Hathaway CEO Warren Buffett has invested in Nubank, a Brazilian fintech that has a lot of its capital invested in Bitcoin.
- America's largest bank JPMorgan has decided to open a lounge in Decentraland, one of the most prominent Metaverse ecosystems in existence today.
Bitcoin, the world's largest cryptocurrency by total market capitalisation, has continued on its path of upward ascent, rising by 13.8% over the past fortnight. Also, over the last 30-day stretch, the digital asset is showcasing gains of 3.5% while currently trading at a base price of AUD$61,693.
The ongoing price climb comes at a time when news of Russia taking steps to de-escalate tensions with Ukraine came to light, as well as the digital asset market showcasing "exceptionally high" correlation with the S&P 500. On the matter, Twitter analytics account Ecoinometrics noted that mounting pressure from the US Federal Reserve to hike interest rates come March could also be playing a part in the current BTC surge, adding: "The whales are buying. The small fish are buying. That's all good for Bitcoin."
"Bitcoin hater" Warren Buffett continues to increase his crypto exposure
Warren Buffett's Berkshire Hathaway revealed recently that it had dumped a major chunk of its holdings in Visa and Mastercard in lieu of exposure in Nubank, one of the most prominent fintechs in Brazil that has also invested majorly in Bitcoin. As per an SEC filing, the conglomerate has acquired US$1 billion worth of Nubank Class A stock while offloading US$1.8 billion and US$1.3 billion worth of Visa and Mastercard stock respectively.
Even though Buffett has not invested directly in BTC, many of the companies he is involved with have massive exposure to the crypto market. Late last year, one of his primary clients U.S. Bancorp launched a cryptocurrency custody service for its institutional investment managers. More examples of the same include the Bank of America — which launched a cryptocurrency research initiative in 2021 — as well as America's oldest bank BNY Mellon — with the manager now allowing users to hold, transfer and issue Bitcoin.
Banking giant JPMorgan enters the Metaverse
One of the biggest banking entities in the United States, JPMorgan, has decided to enter the Metaverse by opening a "virtual lounge" on Decentraland, the world's most popular blockchain-based social ecosystem. The move comes right after a spokesperson for the firm referred to the sector as a "US$1 trillion opportunity".
The lounge is located in Decentraland's Metajuku mall. When people enter the space, they are welcomed by a digital representation of Jamie Dimon, JPMorgan's CEO. Also, once inside, players have the option to roam around and explore the lounge and its various sections. There is a special room where they can watch a special presentation by Dimon on cryptocurrency and its future potential.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.