On Tuesday (Feb. 16), bitcoin once surged up to the $50,000 per coin mark, hitting a new all-Time high. However, it is estimated that the $50,000 mark is a strong position of resistance, and bitcoin broke the level late in the evening and fell by more than $2,000 in the short term to fall back below $49,000.
Since the wave of pull-up on February 8, bitcoin has been standing firm at the $40,000 mark, with several attempts to move up to the $50,000 mark during the period, but all were unsuccessful.
On Feb. 8 tesla disclosed that it had invested $1.5 billion in bitcoin and intended to start accepting the cryptocurrency as a form of payment. Bitcoin was then pushed to a new all-time high.
This followed several tweets by Tesla CEO Elon Musk mentioning cryptocurrencies, triggering short-lived shocks in assets such as bitcoin.
It was also recently revealed that Tesla board member Antonio Gracias is also a director of digital asset custodian BitGo and cryptocurrency trading platform ErisX. It is not known, however, whether Gracias was involved in Tesla’s $1.5 billion bitcoin investment decision. gracias is the founder of investment firm Valor Equity Partners. Earlier, Gracias invested in securities-based pass-through platform Harbor, which was acquired by BitGo last year.
Following the news that Tesla invested $1.5 billion in Bitcoin, last Wednesday the 10th, “Dr. Doom” Roubini said that Musk’s tweets about Bitcoin before Tesla invested in it were a form of market manipulation that should be investigated by the U.S. Securities and Exchange Commission (SEC).
In an interview with cryptocurrency website CoinDesk, Roubini said.
“First it’s individuals taking positions in bitcoin, pushing up the price, and then saying Tesla has invested. That’s irresponsible and market manipulation. The Securities and Exchange Commission should be investigating people who have influence over the market and manipulate asset prices. This is also criminal behavior.”
And the SEC has recently responded.
A senior SEC official said on Sunday that a clear regulatory regime for cryptocurrencies is urgently needed as major companies such as Tesla, Bank of New York Mellon and Mastercard are backing cryptocurrencies as an alternative asset class. She said.
“This is not only because there have been calls for clarity for some time, but the new U.S. administration has brought an opportunity to take a fresh look, and others in the market now seem to be seeing things in a new light.”
On the other hand, the record high price of bitcoin continues to raise concerns among major institutions. on February 12, the CEO of Twitter gave a nod to the mayor of Miami’s proposal to pay staff in bitcoin, which would allow city workers to choose whether they want to receive some or all of their salary in bitcoin.
JPMorgan Chase co-president Pinto also said he was open to bitcoin. He said there is not much demand for bitcoin from customers yet, but surely that will change at some point. He stated.
“If, over time, a new asset class develops and will be used by different asset managers and investors, we will have to get involved. But there is no demand for it yet, and I believe there will be at some point.”
Just last weekend, it was also reported in foreign media that Counterpoint Global, Morgan Stanley’s $150 billion investment arm known for picking growth stocks, is considering adding bitcoin to its list of possible bets.
The unit is exploring whether the cryptocurrency would be a suitable option for its investors, according to people familiar with the matter. Investments in bitcoin would also require approval from the company and regulators. A Morgan Stanley spokesman declined to comment. The results of Morgan Stanley’s and regulators’ assessments may ultimately lead Morgan Stanley to choose to stay away from bitcoin. Previous rallies in this cryptocurrency had also attracted a lot of interest from Wall Street investment banks, but all ended in failure.
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