The Crypto market rose on Monday as new macro factors and institutional interest weighed in.
Cryptos Recover from Selloff
Following last week’s sell-off, Bitcoin and the broader crypto market rallied alongside the US equity markets. Bitcoin (BTC) retraced back up to $49,000, with Ethereum (ETH) recovering to $1,500. The biggest crypto names all recovered to varying degrees, except for Cardano (ADA) which saw a small dip to $1.24 earlier today. In the equity markets, the Dow soared 603 points and NASDAQ 496 points respectively, as treasury yields cooled and the Congress revealed that the stimulus package was well on its way.
The stimulus package may also turn out to be a significant boon to the Bitcoin rally. The $1,400 direct payments to all eligible Americans will likely find its way to the crypto markets. Historically speaking, this has been the case. When the past two stimulus checks were passed by regulators, exchanges surged in usage.
In 2020, CoinTelegraph reported that deposits equal to stimulus check payouts appeared across crypto exchanges. An analyst team from Bank of America stated in late January that a dramatic increase in retail activity was imminent with another round of stimulus checks.
With a renewed public interest in Bitcoin and altcoins, the stimulus injection will most likely serve as another catalyst for the continued bullish trend well into the 2nd quarter of 2021.
Major Bank Revamps Crypto Trading Desk
Per Reuters London, Goldman Sachs Group Inc restarted its cryptocurrency trading desk, selling bitcoin based financial products to clients starting from next week. With more institutions taking advantage of Bitcoin and other fast-growing digital assets, Goldman is rebooting its operations from 2018. They will offer derivatives based on Bitcoin futures and explore a potential crypto exchange traded fund (ETF).
As new opportunities in the blockchain space arise with the likes of the Central Bank exploring a potential Central Bank Digital Currency, the bank looks to reestablish its crypto-based offerings and infrastructure. Goldman Sachs is one of the first major banks to offer crypto-tied financial products to its clients, and without a doubt, many more will likely follow.
Featured Image from UnSplash