Bitcoin, Ethereum, and other major cryptocurrencies brace for $ 2.1 trillion earthquake after extreme price swings

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Bitcoin and cryptocurrencies have seen a sharp return to volatility over the past two weeks, with the combined crypto market losing and then gaining around $ 300 billion (Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and find out crypto blockbusters set to gain 1000%).

The price of bitcoin, which is currently trading comfortably around the psychological level of $ 40,000 per bitcoin, remains significantly lower from its April high of nearly $ 65,000.

Now, amid reports that institutional investors are preparing to re-enter the bitcoin and crypto market, a new law in Germany will allow institutional investors who currently manage 1.8 trillion euros ($ 2.1 trillion) investing in bitcoin and crypto for the first time.

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MORE FROM FORBESCrypto Price Prediction: Bitcoin Could Be Left In The Dust By Ethereum In 2021By Billy Bambrough

The price of bitcoin has swung sharply over the past week, with bitcoin trading in a $ 10,000 range. … [+] Meanwhile, Ethereum and other major cryptocurrencies have also rebounded violently.

AFP VIA GETTY IMAGES

The so-called Spezialfonds, only available to institutional investors such as pension companies and insurers, will be able to invest up to 20% of their holdings in bitcoin, ethereum and other cryptocurrencies from Monday. .

“Most funds will remain well below the 20% mark initially,” Tim Kreutzmann, crypto-asset expert at BVI, the German fund industry organization, told Bloomberg, which first reported. the new. “On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.”

Earlier this week, some $ 2.5 billion worth of bitcoin left crypto exchanges, including Coinbase, Kraken and Binance, according to market data provider Glassnode, in what was described by CNBC as “a signal that the institutional investors withdraw “.

Some 63,000 bitcoin tokens have been transferred out of major exchanges, according to data from Glassnode.

Trading activity has been higher in recent days than we’ve seen recently, ”said Jeremy Welch, product manager at the US bitcoin and crypto exchange Kraken, in comments sent via Twitter DM and predicting “Greater participation by regulated entities .. If the story holds, it could ultimately prove to be very positive for the price of crypto space.”

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MORE FROM FORBESCrypto Price Prediction: Bitcoin ‘To Surpass’ The Dollar By 2050 And Soar To $ 66,000 By End Of 2021 By Billy Bambrough

The price of bitcoin has regained some lost ground since a huge sell-off in April and May that … [+] wiped over $ 1,000 billion from the combined bitcoin and crypto market and sent ethereum and other tokens plummeting.

Coinbase

The recent rally in bitcoin prices was triggered by reports that online retail giant Amazon plans to roll out support for bitcoin and crypto as early as this year. The company denied City AM’s report but said it was “exploring what [crypto support] might look like Amazon. “

“Regardless of the fact that [Amazon adoption] materializes or not, the point is that adoption by institutions and enterprises remains one of the driving narratives of the market, ”Welch added.

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