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Bitcoin Reaching for $6,000 amid Fidelity Institutional Investment Rumours

May 7, 2019 at 10:19 by Matt Jackson

Bitcoin prices are continuing their surge upwards, topping $5,900 early on Tuesday. Surging Bitcoin and Ethereum prices have pushed cryptocurrency’s market cap to a new 2019 high, at more than $190 billion, potentially being fuelled by word that Fidelity Investment will offer crypto trading to institutional investors within a few weeks. Analysts have predicted that the move could easily add $2,000 to BTC prices. Meanwhile, Facebook has acquired the trademark to “Libra”, believed to be the name for its own foray into the crypto market.

Bitcoin enjoyed another positive April. Having started 2019 with prices around $3,700, the digital currency traded in a channel between $3,200 and $3,900 between January and March. At the end of March, however, it started to surge, passing $4,000 at the beginning of April, and ending the month at $5,200 having briefly touched on $5,500. May has seen further gains, now trading around $5,900.

One potential reason for the uptick is Fidelity Investment’s rumoured entry into the cryptocurrency trading market. The company is said to be ready to offer buying and selling to institutional investors, rather than individuals, and a source that is said to be close to the company has said that the move is likely to happen within the next few weeks. Analysts have said that, if confirmed, this kind of move could easily add $2,000 to the value of the coin.

Fidelity recently conducted a survey of institutional investors. The study questioned more than 400 such investors, with nearly 50% stating that digital assets had a place in their portfolio. The vast majority of those said that they would be happiest investing in an ETF or other fund. The new product could represent the introduction of institutional investors that the market has been waiting for.

Meanwhile, Facebook’s rumoured cryptocurrency looks a step closer to coming to fruition. The social media giant acquired the rights to the “Libra” trademark, and sources close to the company have confirmed that the company is employing financial organisations to help develop their currency. It is believed that the currency would be a stablecoin, and there have been some suggestions that it might be used as a form of loyalty scheme for regular Facebook users.

At 11:00 GMT, Bitcoin (BTC) is trading at $5,909.02. Amongst other major cryptocurrencies, Ethereum (ETH) has seen nearly 10% gains in 24 hours, reaching $176.81. Ripple (XRP) is trading at $0.30, Bitcoin Cash (BCH) at $292.40, and Litecoin (LTC) at $76.21.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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