In a recent update from the cryptocurrency world, Bitcoin has surged to $11,000 for the first time in three months, reflecting a 20% increase since the beginning of the week. This spike in value follows the Federal Banking Control Agency’s approval for U.S. banks to hold clients’ cryptocurrencies. Prominent figures in the cryptocurrency space, such as Michael Novogratz, predict that Bitcoin could rise to $14,000 in the next three months and potentially reach $20,000 by the end of the year.
The open interest in Bitcoin futures on the CME hit a record $724 million, indicating increased market participation and expectations for enhanced volatility. Meanwhile, the cryptocurrency fear and greed index suggests that the market is overheated, sparking speculation about a possible price correction after an anticipated rise to $28,000.
Additionally, Ethereum is gaining momentum, now representing 80% of transactions on certain exchanges as Bitcoin’s share has decreased. TransferWise, a British fintech startup, recently secured $319 million and is valued at $5 billion. In contrast, Visa reported a notable decline in revenue, although it anticipates long-term benefits from changing payment habits due to the pandemic. The decentralized finance market, although growing, has not yet surpassed the market cap of major cryptocurrencies.
