The price action follow through from the JPMorgan coin announcement has been given further a boost by call from pension consultancy Cambridge Associates in the US, reported by Bloomberg, urging pension funds to start “exploring” dipping their toes in the crypto waters.
Bitcoin is currently trading at $3,913 on Bitstamp.
“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world,” the note to clients published today (Monday 18 February) said, according to Bloomberg.
Before jumping in however, the consultants recommend that firms first take “a considerable amount of time learning about the space”.
Institutions have been reticent about getting into crypto because of security and regulation concerns and the immaturity of the market where manipulation is thought to be particularly prevalent.
But on all those counts there are signs of improvement, especially in the realm of custody, with Fidelity soon bringing its institutional-facing service into the mix.
This latest news on the pensions funds front comes after two funds in Fairfax County last week invested in Anthony Pompliano’s $40 million Morgan Creek Digital crypto venture fund.
Bitcoin now trading above $3,900
Bitcoin has broken through $3,900, breaking out of the downtrend channel that’s been in place since December last year. According to coinmarketcap, bitcoin is 7.4% higher on a 24-hour view.
Daily trading volume continues to move higher, now at $29.6 billion, according to coinmarketcap.
On Bitstamp the bitcoin price is now closing in on $3,800, currently priced at $3,893.
Having taken out the 50 SMA earlier today, the bulls are now sitting astride the 100 SMA (red line).