Commodity News

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, soft commodities, and Bitcoin

Archives

Will Mastercard’s Crypto Acceptance Affect Bitcoin Price?

February 12, 2021 at 12:04 by Ibrahim Anifowoshe

Mastercard, the leading credit card conglomerate, announced earlier this week that it will allow its users to utilize cryptocurrencies on its payment network. This comes after Visa announced a similar adoption of cryptocurrencies on its payment platform. Post the announcement, Bitcoin price moved rapidly upward from around $45,000 to a new all-time high of $48,000.

Raj Dhamodharan, executive vice president of digital asset and blockchain products and partnerships, said:

Many of the hundreds of digital assets in circulation still need to tighten their compliance measures, so they won’t meet our requirements. We expect consumers and the ecosystem as a whole will start to rally around the crypto assets that offer reliability and security.

He added that this adoption of crypto is to allow their merchants avoid having to convert back and forth between crypto to accept payments:

Our change to supporting digital assets directly will allow many more merchants to accept crypto — an ability that’s currently limited by proprietary methods unique to each digital asset. This change will also cut out inefficiencies, letting both consumers and merchants avoid having to convert back and forth between crypto and traditional to make purchases.

What next?

The decision to adopt crypto by Mastercard came just after BNY Mellon also entered the crypto space.

With this, the level of adoption and acceptance of cryptocurrencies among institutional investors soared to an unprecedented level. This is expected considering some of the biggest companies in the world like Tesla and Investment fund like MicroStrategy have also entered the cryptocurrency market with a huge purchase of BTC.

Fund managers and analysts agree that Bitcoin has not seen such institutional interest in the past. The market sentiment has remained positive.

4-hour chart showing price surge

The price surge following the statement by Mastercard showed this. The 4-hour chart above shows how the price moved from around $45k to above $48,000.

Mastercard’s entrance only strengthened the positive sentiment around Bitcoin. Tesla’s purchase of $1.5 billion BTC had earlier created a significantly positive outlook.

In the near term, it’s expected that Bitcoin will continue to enjoy a bull rally despite an overcrowded futures market.

Grayscale Bitcoin Trust was significant in building demand for Bitcoin. Helping BTC to build from the spot market to institutional vehicles or investors.

Short-term corrections are expected in the near future. However, in the long term, Bitcoin price will remain healthy.

Kelvin Koh, a partner at Spartan Group, one of the biggest DeFi-focused funds in Asia said in a tweet:

Mark Cuban, Peter Thiel, Elon Musk, Chamath P, Paul Tudor Jones, Stan Drunkenmiller. The Who’s who of Wall Street and Silicon Valley all own crypto. If you are still a skeptic, what is your defense? Are you smarter than these guys combined?

For the foreseeable future, Bitcoin is expected to enjoy a steady inflow of capital from institutional investors. The positivity around the coin will also continue to steadily rise like the price.

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

Leave a Reply

required
required  

Navigation

Menu