Bitcoin leads crypto market bounce back as major firms Tesla and KPMG confirm holding
Kazakhstan: Nationwide blackout sparks global Bitcoin crash
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Bitcoin has risen over 17 percent in the last five days to break back past the key $40k threshold. The digital coin now stands at £32,210 ($43,544). Ethereum meanwhile, which remains the second biggest cryptocurrency, has seen its price recover back past $3k to reach £2,242 ($3,075). Both currencies have benefited from a number of companies revealing their investments recently in a growing sign of digital assets becoming more mainstream.
Tesla, whose founder Elon Musk has been highly vocal on cryptocurrencies, revealed its Bitcoin holdings stood at £1.5bn ($1.99bn) at the end of last year.
Will Hamilton, head of trading and research at Trovio Capital Management, explained: “A number of filings during the past week have revealed continued accumulation and retention of Bitcoin amongst corporations and government officials.
“KPMG Canada has completed an allocation of digital assets to its corporate treasury.
“The firm’s first direct investment includes both Bitcoin and Ethereum, as well as carbon offsets to maintain a net-zero carbon transaction.”
Bitcoin previously reached an all time high of £50.19k ($68,000) in November but slumped since then leading many to discuss the prospect of a crypto winter of depressed prices.
Markets received a further boost recently as US lawmakers reintroduced a proposed bill providing tax exemption for small scale cryptocurrency transactions.
Marcus Sotiriou, analyst at digital asset broker GlobalBlock, added there had been “positive regulation globally” with companies such as Google and Intel announcing their entry into cryptocurrency.
But he warned the recent rally “may not be long-lived” given wider economic conditions with coins such as Bitcoin not necessarily remaining the main winners.
Mr Sotiriou said: “Metaverse and gaming tokens have generally been the best performers, as these sectors are seeing the most adoption and excitement within the crypto space at the moment.
“As adoption for play-to-earn games using blockchain technology progresses, the tokens behind the games have potential to perform well, even if Bitcoin goes through an extended downtrend.”
One gaming token example is Decentraland which has surged in value by over 16 percent in the seven days.
The token is linked to a virtual reality world of the same name in which users can buy their own land and create virtual enterprises including casinos, theme parks and galleries and charge players to visit them.
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As well as gaming tokens, memecoins have also been seeing recent gains with Dogecoin rising over 10 percent in the last seven days.
Dogecoin has been outpaced by its rival Shiba Inu though which has seen gains of nearly 50 percent in the last week.
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