Monday, February 15, 2021

Bitcoin drops from record-high of nearly $50,000 after a week of increased attention on Wall Street

Bitcoin slid on Monday from its latest all-time high as investors took profit from its record-breaking rally last week.


The digital asset dropped 1.6% to $47,845, after posting a record of $49,716 on Sunday. Meanwhile, ethereum dropped 0.6% to $1,789.

Bitcoin attracted more attention on Wall Street last week as a flurry of updates pushed the token to the near-$50,000 mark.

Tesla announced a $1.5 billion bitcoin investment , Mastercard is preparing to open its network to crypto , Bank of New York Mellon plans to start transacting bitcoin for its clients, and an investment arm of Morgan Stanley said it's considering a stake in bitcoin.

"Bitcoin is increasingly going mainstream and the vote of confidence by major companies could have positive effects on the cryptocurrency that will last well beyond the knee-jerk reactions seen in the past week," said Milan Cutkovic, market analyst at AxiCorp.

Combining growing institutional demand with ultra-low interest rates, bitcoin could touch further highs in the first quarter of 2021.

One analyst thinks it could shoot higher than $50,000 this week. But that may require another financial institution to announce it will offer crypto custodial services for their wealthy private clients, said Jeffrey Halley, a senior market analyst at OANDA.

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