Surging prices, anticipation, and steady coin interest round out today’s headlines.
The Bitcoin pump, analysts attribute, is due to institutions flowing, sinking millions into the digital gold. Over time, BTC has evolved to serve as a hedge against inflation while acting like money.
Its censorship resistance, existence in the digital realm, and, more importantly, its exponential price rise is attracting a new kind of cautious but deep-pocketed investor: Institutions.
By the end of the year, Ross Stevens, the founder of the NYDIG, told Michael Saylor of MicroStrategy during the Bitcoin for Corporation virtual event that they might invest at least $25 billion.
With institutional investment comes capital gains expectations. Bitcoin is still oscillating within a $12k trade range with caps at $42k on the upside and $30k on the lower end.
Accompanying Ross’s comments were a huge BTC withdrawal from Binance—one of the world’s largest cryptocurrency exchanges. Records show that 17,199 BTC was withdrawn to an unknown address.
Talking of Binance and Changpeng Zhao, the founder, has said the exchange is launching a PayPal competitor called Binance Pay. Although still in Beta, it will serve as a way for token holders to spend their coins rather than just holding. Zhao projects crypto payments to be the next big thing. Already Travala is integrating with Binance Pay.
There are five initial cryptocurrencies supported, including ETH.
Ethereum could be trading at around a new all-time high. However, there are challenges around Gas fees. According to BitInfoCharts, the average Gas fee on Feb 4 stood at $23, a new record.
Addressing Gas fees is now Ethereum’s immediate need. DeFi users, the main driver of ETH prices, may suffer due to high transaction fees. Some projects, including Aave, are already migrating to L2 for scalability.
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