Bitcoin price rallies again and Citibank sees BTC at „inflection point“
The bitcoin price is showing clear signs of recovery after two rather bearish weeks and is working its way back up to the psychologically significant US$50,000 mark, which it had breached again in the early hours of the morning. The number one Bitcoin Loophole app cryptocurrency may have received a tailwind from the announcement by the short message service Twitter that it intends to invest up to 1.25 billion US dollars in BTC. BTC reserve pioneer MicroStrategy has also announced a further, albeit relatively small, Bitcoin investment. At press time, Bitcoin is trading at US$48,712, continuing its strong start to the week with another daily gain of almost 5 per cent.
Citibank tries its hand at bitcoin clarification
Citibank is trying its hand at bitcoin education in a 100-page document. For this, the financial institution interviewed representatives of the crypto industry. Among others, leaders of MakerDao, Uniswap, Coinmetrics, Chainalaysis and Grayscale had their say. The conclusion of the report is already in its name: „Bitcoin: at the turning point“.
The report gives an overview of Bitcoin’s history, its original goals and the status quo of digital currencies. The authors of the Citi report see the biggest change in the fact that Bitcoin is increasingly attracting institutional investors. The global efforts to establish a legal framework for Bitcoin and other digital assets are also interpreted by the authors as a sign that Bitcoin is „at the tipping point between mainstream acceptance and speculative implosion“. The report, which, as it says in the fine print, is not „research“, casts even controversial players in the crypto space in a merciful light.
Although the justified doubts about USDT’s coverage are certainly addressed, the tendency is clearly in the direction of „it will fit“. The argumentation: Apparently, many market participants have confidence in USDT’s coverage, which is shown, among other things, by the record number of USDT tokens issued in 2021. Moreover, the Bahamas-based Tether bank Deltec claims „rock solid“ that Tether is backed. The fact that Tether and Bitfinex were recently banned from doing business in New York State by the New York State Attorney General’s Office – forget it.