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US Banks Can Now Provide Cryptocurrency Custody Services – Says US Bank Regulator

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US Banks to Commence Cryptocurrency Custody Services

The US Office of the Comptroller of the Currency (OCC) on Wednesday said banks in the country now have the right to provide cryptocurrency custodial services to cryptocurrency businesses.

In a letter issued to banks, the OCC said banks providing cryptocurrency custodial services to investors and businesses would have to take possession of cryptographic access keys to that unit of cryptocurrency.

This, it said was due to the difference in traditional banking methodology and the blockchain technology process.

“From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today,” said Acting Comptroller of the Currency Brian P. Brooks.

“This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”

This, move according to cryptocurrency experts, could open mainstream doors to the cryptocurrency world and further bolster the digital market outlook going forward.

One of the key industry players, Gemini, a regulated cryptocurrency exchange and Anchorage, agreed this could be good for the crypto industry.

“Today’s forward thinking announcement by the OCC validates Gemini’s long standing approach to custody. Gemini has built an institutional-grade custody solution to address the unique challenges of storing digital assets, that’s regulated by the NYDFS, and serves many institutional partners. A regulated solution provides the best option for the safety and security of clients’ crypto assets,” said Noah Perlman, Chief Compliance Officer, Gemini.

Bitcoin value rose above $9500 immediately the report was made public on Wednesday.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Bitcoin

Institutions Keep Accumulating Bitcoin As It Dips Below $45K

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After failing to reclaim the $50,000 level, BTC faces renewed selling pressure in the short term. However, short-term headwinds don’t negate the bull market.

Bitcoin (BTC) price slipped below $45,000 on Sunday for the second time in four days, raising the specter of a deeper short-term correction for the flagship digital currency.

Bitcoin fell to a session low of $44,696.01, according to data from coinmarket cap. In the last 24 hours, the largest cryptocurrency by market capitalization is down 7.65 percent over 22.87 percent in the last seven days.

The selloff in BTC contributed to a market-wide correction for crypto assets, as Ethereum (ETH) fell 10.40 percent, Polkadot (DOT) declined 13.84 percent and Binance Coin (BNB) dipped by 6.06 percent In the last 24 hours.

Market sentiment towards cryptocurrencies has soured in recent days after it was revealed that Tesla is no longer accepting Bitcoin payments for its automobiles. Headlines about a possible investigation into Binance by the United States Justice Department have also raised concerns about a potential regulatory backlash.

Meanwhile, Caitlin Long of Avanti digital bank believes that Tether’s first-ever reserve disclosure has spooked investors. In a Twitter thread posted on Saturday, Long said Tether’s “probability of default [and] loss severity in default just went up” because of its credit exposure. Namely, almost two-thirds of the company’s cash and cash equivalents are stored in commercial paper.

Despite all the noise in the market today, institutions are accumulating Bitcoin with ever-growing conviction, offering compelling evidence that the bull market is far from over.

Bitcoin Treasuries, which tracks corporate and institutional exposure to BTC, reported Saturday that institutions have accumulated 215,000 Bitcoin in the past 30 days. That’s equivalent to roughly $10 billion.

Corporations with Bitcoin on their balance sheets have generated a significant return on investment. As Bitcoin Treasuries reported on May 12, the value of MicroStrategy’s BTC reserve has grown by 2.3 times. The value of Square’s Bitcoin stash is up 2.1 times. Riot Blockchain’s holdings have increased in value by 9 times. These figures have declined slightly amid the latest market correction.

Institutions have been flooding Bitcoin for the better part of a year. These so-called smart money investors are one of the biggest reasons for BTC’s ascent from just $10,000 last summer to a high of around $64,000 in April.

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Cryptocurrency

Cardano (ADA) Surges to New All-Time High of $2.37

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Cardano (ADA) has continued its bullish momentum as the project saw a new all-time high reached on Saturday, touching $2.37 on Binance.

Following a tumultuous week of volatility in the market, ADA has seen a new all-time high reached over the weekend. Breaking past the $2 mark.

ADA had previously tested a new high one week ago. However, comments made by Tesla CEO Elon Musk regarding the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions” triggered a market sell-off. ADA slumped to a weekly low of $1.50 before continuing its rally towards another all-time high.

The cryptocurrency is currently hovering over $2. With an impressive 25 percent gain in the last week. ADA had previously hit a new high eight days ago. Before seeing three more days of new highs.

Crypto analyst Benjamin Cowen recently tweeted a poll asking “What crypto will be the third coin to make it to $200B market cap?” Surprisingly out of BNB, DOGE, and XRP, ADA was currently the favorite in ratings. With neatly 10,000 votes, ADA was leading the poll with 57 percent of the votes. With BNB coming in second with 24 percent.

Popular forex and crypto trader Peter Brandt had previously tweeted a price target for ADA. Brandt speculates that the price of ADA should hit $2.26 based on his “ballpark” target analysis.

Cardano recently announced it would be launching its Alonzo hard fork in May. The announcement will see the Goguen era of Cardano’s roadmap fulfilled.

The upgrade is set to implement secure smart contracts. The smart contract capabilities will be based on Plutus’s custom-build programming framework.

Furthermore, Input-Output, the parent company of Cardano, has recently partnered with World Mobile Group. The partnership is set to provide affordable network nodes through the Cardano blockchain infrastructure.

The African partnership will allow citizens to backup copies of important documents through the blockchain.

Ada currently has a market capitalization of $72 billion taking the fourth position on coinmarketcap.

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Ethereum

Experts Predict Ethereum Price to Hit $19,842 by 2025

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Thirty-five experts have come together to predict the price of ethereum, the second-largest cryptocurrency after bitcoin. On average, they expect the price of ether to hit $19,842 by 2025. The majority of panelists say now is the time to buy ethereum while 28 percent say to hodl.

The “Finder Cryptocurrency Predictions 2021” which was updated Monday predicts that the price of ether will be nearly $20K by 2025 according to 35 experts on Finder’s cryptocurrency panel. The report says: “By 2025, the panel expects Ethereum to hit $19,842 on average.”

The ethereum price, after beginning the year at under $1,000 per ether token, has smashed through $4,000—climbing alongside bitcoin and most other major cryptocurrencies.

Now, an expert panel has predicted ethereum is set to soar to almost $20,000 by 2025, an increase of 400 percent from its current price, with “major upgrades” to the ethereum network potentially pushing it higher.

The highest forecast came from Bitbull Capital COO Sarah Bergstrand who believes that the price of ether would be $100,000 by 2025. “We are likely to see major upgrades to the Ethereum network this year, and those can be expected to push the price higher,” she explained.

One of the most bearish forecasts came from UNSW associate professor Elvira Sojli who predicted that ETH will end 2025 at just $1,850.

The report continues: “The majority of panelists (59 percent) say now is the time to buy ethereum, while 28 percent say ‘hodl’ and 13 percent say it’s time to sell.”

As for the price prediction for the year 2021, the report notes that the “Panellists predict that the price of Ethereum will hit $4,512 on average by the end of the year. That’s a 234% increase from December’s end-of-year prediction of $1,351.”

One of the highest forecasts came from YAP Global founder and CEO Samantha Yap who noted that the price of ether would be $10,000 at the end of this year, emphasizing that “once BTC is mass adopted, ETH will be next on people’s list.”

Paul Ennis, a lecturer and assistant professor at the University College of Dublin, arrived at the same forecast of $10K for ETH this year, “arguing ethereum is highly undervalued and has far more uses than bitcoin.”

LMAX Group’s cryptocurrency strategist, Joel Kruger, gave a more moderate forecast of $2,000. He is also convinced of “ethereum’s potential, viewing the currency as the major hub of innovation on the blockchain.” He described that “As crypto adoption continues, most of that innovation will therefore be hosted on Ethereum, which we expect will translate into a much higher valuation.”

The panelists include Bitriver CEO Igor Runets; Thomson Reuter’s technologist Joseph Raczynski; Okcoin COO Jason Lau; Etoro analyst and senior account manager Simon Peters; Consensys head economist Lex Sokolin; Coinmama CEO Sagi Bakshi; Unocoin CEO Sathvik Vishwanath; and Origin Protocol co-founder Josh Fraser.

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