Bitcoin surpasses $ 55,000 thanks to approval from George Soros fund

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By Paul R. La Monica, CNN Business

Bitcoin is back, and it has a prominent new supporter.

The price of the world’s most valuable cryptocurrency climbed nearly 10% Wednesday morning to around $ 55,000, following news that the investment firm founded by billionaire George Soros owns bitcoin.

Soros, who is famous for making a lot of money on traditional currency investments, has reportedly been trading bitcoin in recent months.

The bitcoin surge comes a day after prices surpassed $ 50,000 for the first time in four weeks.

And the head of Soros Fund Management argues that bitcoin has even more long-term potential: “I’m not sure bitcoin is considered here only as a hedge against inflation. It has crossed the chasm to become mainstream, ”said Dawn Fitzpatrick, CEO and CIO of Soros Fund Management, in an interview with the Bloomberg Invest Global Summit on Tuesday evening.

Fitzpatrick told Bloomberg that Soros Fund Management owns “a few coins … but not a lot.”

Bitcoin and other cryptos have risen sharply this year, despite concerns over a crackdown in China and the possibility of tighter regulation in the United States. This is thanks to factors such as rising interest rates and the fact that more and more large financial companies are investing in digital currencies.

The value of all bitcoin in circulation is now more than $ 1 trillion more than Facebook’s market value. And all cryptocurrencies together represent $ 2.3 trillion in circulation, corresponding to the market value of the most valuable stock: Apple.

El Salvador recently became the first country to adopt bitcoin as legal tender. Bitcoin fans argue that the cryptocurrency should benefit in the short term from inflationary pressures and higher bond yields, as government-backed paper currencies like the dollar, euro, and yen lose some of their power. purchase as rates rise.

Still, several prominent business leaders and investors have expressed reluctance to embrace bitcoin and other cryptocurrencies. Mega billionaire Warren Buffett continues to criticize bitcoin. Much like JPMorgan Chase CEO Jamie Dimon in a recent appearance on the Axios HBO TV show.

But the fact that the Soros family office, which manages the billionaire philanthropist’s money, now publicly has some skin in the crypto game adds to the industry’s legitimacy.

Crypto bulls also cheered after US Bancorp announced plans this week to offer more cryptocurrency custody services to large institutional investors who wish to trade bitcoin.

“Investor interest in cryptocurrency and our clients’ demand for fund services have grown significantly over the past few years,” Gunjan Kedia, vice president of US Bank Wealth Management and Investment Services said in a statement. Press. “Our fund and institutional custody clients have ramped up their plans to offer cryptocurrency.”

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