Bitcoin (BTC) Continues To Get Stronger


This week, Bitcoin regained the critical $ 11,000 level; revived by stronger buying volumes and easy monetary policies maintained by the Federal Reserve.

Last week, research and data firm CryptoQuant saw a massive increase in Bitcoin transaction volume, but noted that the increased volume did not flow to the exchanges. Estimates at the time were likely to be an over-the-counter (OTC) buyer deal.

MicroStrategy CEO Michael Saylor announced that the company purchased an additional $ 175 million in Bitcoin for capital reserves, increasing its cumulative total to $ 425 million. Given the large purchases made by MicroStrategy, the increase in transaction volume recorded by CryptoQuant makes sense as a possible explanation.

MicroStrategy’s shares were well rewarded, up nearly 20% since the announcement.

Additionally, leading cryptocurrency exchange Kraken; announced yesterday that they were approved by the State of Wyoming to become the world’s first Special Purpose Custody Agency (SPDI), the first cryptocurrency company to become the US bank, temporarily called “Kraken Financial”.

The new organization will offer a variety of services to Kraken customers in the US, such as depositing US dollars and storing digital assets in a regulated government-approved bank.

The first “Crypto Money Bank” is another milestone in the road that takes corporate money to Bitcoin and other digital assets, like registered investment advisors (RIAs).

Kraken specifically points out that one of its future services will be digital asset “staking”. Staking provides token holders a return as compensation for depositing their tokens in the ecosystem to secure the network. For example, per Staking Facilities, the betting asset Cosmos ($ ATOM) has a current yield of 10% per year.

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Interestingly, Tyrone Ross, CEO of Onramp Invest, stated earlier in the week that attractive returns on digital assets are starting to attract the attention of major DEAs due to the low interest rate environment.

Kraken’s bold move could pave the way for more reputable brands to eventually offer cryptocurrency-friendly banking services such as staking. If so, these financial jugglers will likely bring a wave of buying requests for Bitcoin and staking assets with them.

Bitcoin has had a strong week of developments that seemingly soared at every turn, but there are a few hurdles, mainly brand recognition for traditional asset managers. However, if even some of the above happens, Bitcoin will achieve an incredible price increase.


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