Revealed Through Citibank Report
Bitcoin Price Surges 10% on the 2nd
[Asia Economy Reporter Kwon Jae-hee] The global financial group Citibank has published a favorable report on the virtual currency Bitcoin. As major U.S. banks also begin to reassess Bitcoin, interest is growing over whether Bitcoin will establish itself as a new international currency.
According to CNBC on the 1st (local time), Citibank stated in the report published that day, "Cryptocurrencies such as Bitcoin stand at a critical crossroads: whether they will be recognized as mainstream currencies or end as a bubble," adding, "Since Bitcoin is already used internationally, it could eventually become a currency used in international trade."
Citibank also added, "Cryptocurrencies like Bitcoin are expanding their base thanks to the participation of many institutional investors."
CNBC evaluated this as "indicating a change in the sentiment of major financial institutions toward Bitcoin."
Until now, major financial institutions have avoided digital assets, arguing that the bubble controversy surrounding virtual currencies is similar to the tulip price surge that led to a speculative frenzy in 17th-century Netherlands.
However, due to the rapid rise in Bitcoin prices over the past few months, Wall Street heavyweights and major U.S. banks have begun to reassess cryptocurrencies.
The Bank of New York Mellon, the oldest bank in the United States, announced last month that it will provide custody services that allow holding and transfer of Bitcoin and other digital currencies.
JP Morgan also stated that it is taking Bitcoin seriously.
Mastercard has announced plans to soon support the option to pay with cryptocurrencies on its financial payment network.
As major financial institutions consecutively reassess Bitcoin, its price is also rising accordingly.
According to CoinMarketCap, a U.S. cryptocurrency market data site, as of 6 a.m. on the 2nd (Korean time), Bitcoin was trading at $38,664, up 9.37% compared to 24 hours earlier. After falling to the $43,000 level on the 28th of last month, it recovered to the $48,000 level in just two days.
Meanwhile, Bitcoin surpassed $58,000 on the 22nd of last month, setting a new all-time high.
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