Bitcoin price ascends as another multi-billionaire enters the market

Posted: 8 March 2021 10:42 pm

Fund manager George Soros enters the market with investment in a Bitcoin-oriented financial services firm.

  • Bitcoin hits $52,309 with strong support during recent dips.
  • Market indicators show Bitcoin “pushing aside” gold.
  • Soros Fund Management enters the Bitcoin space in funding round with NYDIG.

Bitcoin is trading at $52,309 at the time of writing, which is a 1.5% increase in the last 24 hours according to aggregate market data. Bitcoin’s spot price hit as high as $52,406 in early trade and lost 3.72% in a matter of hours dropping to $49,473.

The price of Bitcoin has seen strong support on dips over the past 14 days. On March 1, the price of Bitcoin dipped to around $43,300 very briefly. Since then, the lowest Bitcoin has ventured has been $46,698 on March 5, following today’s pattern of strong support following a volatile dip.

The market for altcoins is performing well in Bitcoin’s wake. Each of the top 10 cryptocurrencies by market capitalization is trading in positive territory. Chainlink is showing the most significant gains posting growth of over 10%. Ethereum is also up 7.7%.

Bitcoin “pushing gold aside” as a store of value

Its rise comes amid growing evidence that Bitcoin could be on its way to replacing gold as an international store of value. Mike McGlone tweeted saying that “most indicators” suggest that there is an acceleration of Bitcoin replacing gold in “investor’s portfolios.”

Using a graph that charts Bitcoin referenced against the price of gold, McGlone shows that Bitcoin is “pushing aside” gold as a primary store of value. The graph shows the price of Bitcoin rising relative to gold and the market capitalization of gold-backed exchange traded funds going down.

A graph comparing the value Gold ETFs against Bitcoin.

A comparison of key metrics between gold ETFs and Bitcoin. Source: Twitter

If the data is correct, this shows a potential tipping point where the traditional store of value is replaced by a new digital gold. In addition, a secondary chart points out that Bitcoin volatility, when compared to the volatility of gold, has also stabilized.

What that means is that Bitcoin’s stock as a store of value is improving as it could be overcoming one of the chief challenges faced by markets – Bitcoin’s unreliability due to its volatility.

Soros Fund Management signals move into Bitcoin

PR Newswire has released a communique from Bitcoin technology and investments provider NYDIG. The company just completed a $200 million fundraising round, with several big names from legacy finance among the investment pool.

Among the partnered institutions are MassMutual, the oldest insurance company in the United States, Morgan Stanley investment bank, Stone Ridge Holdings Group and Soros Funds Management.

Ross Gutmann co-founder and CEO of NYDIG said that “These partnerships leave no doubt that institutional adoption of Bitcoin has arrived.”

Gutmann explained that the new fundraising round allows NYDIG to offer the full suite of financial services to the market. Among these services, NYDIG will concentrate on “Bitcoin-related strategic initiatives spanning investment management, insurance, banking, clean energy, and philanthropy.”

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, keep your crypto safe with a hardware wallet and dive deeper with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies including 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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