After a small bearish season, Bitcoin and Ethereum are starting a nice recovery upwards. The first cryptocurrency lost over 20% from its last All-Time-High (ATH) in February, but now is showing positive signs. The last week didn’t even reach $50k per coin, but now it surpassed the mark and is close to $54k. Meanwhile, Ethereum only needs 11% more to surpass its last $2k ATH.
The price increases are probably due to new institutional investments and adoptions for both of the cryptocurrencies. About Bitcoin, we can say that the German bank Donner & Reuschel just decided to follow the steps of the American BNY Mellon, because they’re going to offer exchange and custody services for BTC and other cryptocurrencies.
Likewise, the Norwegian energetic giant Aker Solutions announced the creation of Seetee, a new crypto-focused subsidiary. They already invested around 10% of their capital in this project, and they bought around 1,170 BTC as a long-term investment.
The Chinese AI company Meitu is joining these investments too. They bought around $40m not only in Bitcoin but in Ethereum as well. And if the first one would be as a long-term investment, the second one would be for using Dapps in this blockchain. According to their press release:
“The Group is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including but not limited to launching Ethereum-based Dapps, as well as identifying suitable overseas blockchain-based projects for potential investments (…) Purchasing Ether is therefore a logical preparation for both initiatives.”
More good news for Bitcoin and Ethereum
The next March 10, the Berlin upgrade on Ethereum will be launched. The first implementation will be on the testnet Rospsten, as it was announced this Monday by the development team. Later, on April 14, Berlin will be also activated in the mainnet.
To sum it up, this means the activation of several functionalities that’ll allow to reduce the gas prices and enable new types of transactions. If you’re a standard user of ETH, you don’t need to do anything -just enjoy the new prices. Only if you’re running an Ethereum node you’ll need to download the latest version.
On the other hand, it’s worth mentioning that the U.S. Senate just approved President Joe Biden’s $1.9 trillion COVID-19 relief package. This could mean the Fed is planning to print more money, which implies higher inflation for USD. And higher inflation for USD can be good news for Bitcoin, Ethereum, and other cryptos because investors will be looking for other reserve assets. Indeed, the price of Bitcoin came back to climbing after the announcement.
Featured Image by QuoteInspector
Originally published at https://blog.alfa.cash on March 8, 2021.