Bitcoin Surges as Institutional Adoption Increases

Ibeth Rivero

BitcoinBitcoin gained 0.52% yesterday against the US dollar, closing the session at the $57,975.0 level and gaining ground for the second consecutive day.

Adoption of the cryptocurrency keeps consolidating, now that Visa said it will allow the use of USD Coin, which is a stablecoin backed by the US dollar, to settle transactions on its network. The main reason behind this decision, according to the company, is that it would make the platform more accessible to crypto wallets and platforms.

“Crypto-native FinTechs want partners who understand their business and the complexities of digital currency," announced Visa’s chief product officer. “The announcement today marks a major milestone in our ability to address the needs of FinTech.”

With this decision, Visa joined other financial institutions such as Paypal, Mastercard and BlackRock, which have also announced their decision to adopt cryptocurrencies. Elon Musk also recently announced in his Twitter account that his company Tesla is now receiving payments in Bitcoin, highlighting that the company is using internal, open-source software and operates Bitcoin nodes directly.

Another reason why investors are rushing towards cryptocurrencies is the growing fear of inflation, especially now that the US government decided to implement a $1.9 trillion stimulus plan and is considering spending more on infrastructure projects. Some prominent economists and companies are warning against rising prices, though some expect it to be temporary.

Despite the recent enthusiasm for crypto alternatives, not everyone is optimistic about the future of Bitcoin, especially in terms of adoption as an alternative to currencies like the US dollar. Some governments, such as that of India, are thinking about restricting cryptocurrencies, though it's not clear whether people from India will stop investing in cryptocurrencies taking into account that their production and distribution is decentralized.

According to some analysts, Bitcoin is expected to keep rising in the near future. Market Commentator Peter Brandt said during an interview that Bitcoin could rise more than 250% during the current bulls market, adding that the price action is unprecedented.

"As a trader, it’s just unbelievable that I can participate in a market that is going through a situation like this," he commented. "This is just spectacular, this is a spectacular ride, and everybody that’s involved in Bitcoin can know they’re really taking part in history,” he continued, adding that he measures his wealth in Bitcoin instead of fiat.

By 10:34 GMT, Bitcoin gained 1.84% against the US dollar, hitting the $59,123.0 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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