Price of the world’s oldest cryptocurrency, bitcoin, surged past the $59,000 level on Thursday after the US Federal Reserve kept its zero-rate outlook and Morgan Stanley became the latest major corporate to jump on the crypto bandwagon.
The Fed continued to project near-zero interest rates at least through 2023 despite upgrading their US economic outlook and the mounting inflation worries in financial markets. Thanks to the dovish outlook, global stocks were on a strong footing today. In the recent past, bitcoin has witnessed a positive correlation with the stock markets.
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Meanwhile, US investment banking major Morgan Stanley has said it will offer clients access to bitcoin funds. The $4 trillion-asset manager will be the first major bank to offer bitcoin exposure.
Earlier in the week, the digital currency had slipped to a low of $54,000 after hitting its all-time high on profit booking.
“Bitcoin witnessed a healthy pull after hitting a lifetime high of $61,711.87. Bitcoin hitting a lifetime high may have triggered profit-booking by investors as a result of which the bitcoin price has seen a correction. Looking at the current market situation, bitcoin may hit $75,000 mark by next month. Clarity on the regulatory framework around crypto assets in India will boost the market further in coming months. Clarity on the regulatory framework around crypto assets in India will boost the market further in coming months,” Shivam Thakral, CEO, BuyUcoin.
Bitcoin was trading at $59,017.24, up 4.9% at around 12.10pm after moving in a wide range of $54,470.70-59,825.56 over the past 24 hours, as per CoinGecko. The asset is still 4% away from its lifetime high.
Experts also believe that a correction in the stock markets may have a bearing on the crypto verse.
“Among the top 10 tokens, it looks like some tokens have not yet participated in the altcoin rally. All eyes are on the big futures contract expiry around 27 March, and we could see some volatility as we get closer,” said Nischal Shetty, CEO, WazirX.
Shetty is also of the opinion that there won’t be a ban on cryptocurrencies in India
“If we listen to our financial minister (Nirmala Sitharaman), who is open about the crypto industry, I believe that the old bill will be reviewed and enhanced for better prospects for India,” said Shetty.