Bitcoin Hits New All-Time High Above $48,600 As American Corporates Line Up For the World's Largest Crypto

12. Feb 2021 Posted by Akolkar B on News

On Thursday, February 11, Bitcoin (BTC) clocked a new all-time high of $48,800 in a rally that has been backed by a strong interest showered by American corporates. The corporate frenzy around Bitcoin (BTC) triggers soon after world’s largest automobile company Tesla announced $1.5 billion worth of investment in Bitcoin.

The BTC price zoomed past soon after that and in under a week’s time, it has surged an additional 20%. In less than a week, Bitcoin has added another $10,000 to its price whereas its year-to-date returns have skyrocketed to over 70%.

At press time, Bitcoin (BTC) is trading at a price of $47,787 with a market cap of $890 billion. Ever since Tesla has announced its BTC purchase, the corporate streets in America are buzzing and mulling options to put their cash reserves in Bitcoin.

There’s a flood of new of corporates warming up to Bitcoin (BTC). Let’s take a look at them one by one.

  • On Wednesday, February 10, during an interview with CNBC, Twitter CFO Ned Segal said that his company is considering the option of adding Bitcoin to its balance sheet. Segal added that if Twitter employees and vendors agree to accepting Bitcoin, then the social media giant will soon consider investing in Bitcoin from its cash treasury.

    He added: "We've done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin and whether we need to have bitcoin on our balance sheet should that happen. It’s something we continue to study and look at. We want to be thoughtful about it over time, but we haven't made any changes yet." 

    Twitter sister concern Square Inc has already     invested $50 million in Bitcoin back in October 2020.
     
  • E-commerce giant Amazon announced that it has started its new digital currency initiative in Mexico. The job posting from Amazon states that it is looking for a leader of its Digital and Emerging Payments (DEP) initiative in consumer payments.
     
  • Banking giant BNY Mellon announced its new Digital Assets unit offering custodial solutions for Bitcoin and other cryptocurrencies. The banking giant said that this will be the first multi-asset digital custody platform and will be leveraging blockchain technology to provide high-end to offer secure and transparent custodial services.
     
  • During the fresh interview with CNBC, JPMorgan COO Daniel Pinto said that they are open to offering Bitcoin (BTC) trading on their platform once enough client demand is there.

    “If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn't there yet, but I'm sure it will be at some point,” he added.
     
  • Uber CEO Dara Khosrowshahi has said that the ride-hailing giant will start accepting Bitcoin and other crypto payments if they find any benefit and need for it. However, speaking to CNBC, he added that Uber won’t be putting its cash into Bitcoin.
     
  • A report from RBC Capital Markets, accessed by Reuters, shows that tech giant Apple Inc could likely be starting a crypto trading facility on its platform. The research report states that such a move can give Apple significant market shares.

Well, it is clear that corporates are getting interested in Bitcoin and other cryptocurrencies at an unprecedented rate.