Bitcoin gathers speed with stimulus and institutional boosts

bitcoin at $54000

Bitcoin has broken through $54,000 after positive news flow on the latest institutional investors to pile into the digital asset seeking a haven from central bank monetary largesse and massive government spending – no to mention the prospect of inflation ahead.

In addition to the institutional flows, the latest stimulus package has just been signed off in the US, which among other things will see $1,400 fall into the hands of consumers. It is thought that in addition to stocks, some of that money will end up in the crypto markets.

Norwegian billionaire sees one bitcoin ‘worth millions’

Norwegian oil billionaire Kjell Inge Rokke jumped on the Bitcoin bandwagonand Rokke’s Aker ASA is setting up a new business to tap into its potential.

“Bit­coin may still go to zero. But it can also become the core of a new monetary ­architecture,” Rokke, Norway’s second-richest person with an estimated $5.4 billion net worth. He claims it’s not inconceivable that one Bit­coin could one day “be worth mil­lions of dollars.”

He has stablished a new company to invest in bitcoin and its ecosystem, called Seetee. It has a market cap­i­tal­i­sa­tion of 500 mil­lion Norwegian kroner ($58 million), Aker announced in a statement on Monday.

“We aim to in­crease [the capitalization] sig­nif­i­cant­ly over time as we gain ex­pe­ri­ence and iden­ti­fy ex­cit­ing op­por­tu­ni­ties,” said Aker chairman Kjell Inge Røkke  wrote in a shareholder letter posted on Seetee’s website. Røkke is one of the top 10 richest men in Norway.

See­tee plans to hold bit­coin as a trea­sury as­set, as well as invest in bitcoin projects and initiate bitcoin mining. The company is hooking up with Blockstream in its endeavours in the crypto space.

NYDIG pulls in Soros, Morgan Stanley and MassMutual

Also on Monday, NYDIG, a Bitcoin service provider, said it had raised $200 million from investors that included Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual and Soros Fund Management. NYDIG reckons institutional adoption is picking up speed.

In comments to Bloomberg, Edward Moya, senior market analyst at Oanda, said “Bitcoin and Ethereum bullishness are back as more big-money bets keep flowing into cryptocurrencies. Institutional interest still seems strong.”

Lastly, US investment banking giant Goldman Sachs is planning to reopen its cryptocurrency trading desk, initially focused on CME bitcoin futures but looking to branch out from there later.

About the Author

Jennifer Collins
Jennifer has been writing about crypto since 2016 when she first got interested as a student at Queen Mary University in London. You can email me here: jennifercollins@coinintelnews.com

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