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Survey shows hedge funds plan to increase their exposure to cryptocurrencies by 2026. Photo: Getty Images
Bitcoin (BTC-USD) fell below $ 40,000 (28,410) on Tuesday morning as a survey showed hedge fund interest was on the rise and billionaire venture capitalist Tim Draper said he stuck to his prediction that bitcoin will hit $ 250,000 by the end of 2022 or early 2023.
The crypto was down 1% and trading at $ 39,717 per day after receiving a boost as US hedge fund mogul Paul Tudor Jones and Tesla boss (TSLA) Elon Musk put their weight behind bitcoin, although it is still not close to its all-time high. peak of around $ 63,000, which it reached earlier this year.
“Bitcoin is at its highest level since May, a notable rally, but the cryptoasset has yet to make a convincing breakthrough and, most importantly, close to the $ 41,000 mark,” said Simon Peters, analyst. of cryptoassets to the eToro multi-asset investment platform.
The price of Bitcoin was down Tuesday morning after crossing the $ 40,000 mark. Chart: Yahoo Finance France
We saw the price face resistance earlier in the year at this level as it traded around what was then an all-time high, and I would really need to see a bigger rise to be bullish. as to picking up the price and maybe pushing on $ 50,000 and up.
Meanwhile, the Financial Times reported on Tuesday that hedge funds plan to increase their exposure to cryptocurrencies by 2026, citing an investigation by fund administrator Intertrust.
The publication said it was a major vote of confidence for digital assets after recent sharp price declines and plans for new punitive capital rules.
The most recent example is a leading global banking regulator that offers tough rules for cryptos that could make them expensive for banks, and places bitcoin in its highest risk category.
Read more: New rules could make crypto extremely expensive for banks
The report also states that “the growing enthusiasm for hedge funds contrasts sharply with widespread skepticism among more traditional asset managers, many of whom remain concerned about the huge volatility of cryptocurrencies and the uncertainty over the future. how they will be regulated “.
The story continues
Earlier this morning, Naeem Aslam, chief market analyst at Ava Trade, said: Investors should be watching bitcoin’s performance closely as traders have finally built bullish momentum.
The bitcoin bulls are trying to regain control and the hope is that we will finally see the price of bitcoin move towards the $ 50,000 mark. “
“We really think that in the next few days we’re going to hear from miners that most of the energy used in mining is light energy. Such a development… is quite possibly the next catalyst for the price of bitcoins to start their next bull run, ”he added.
It comes amid many concerns about the carbon footprint of bitcoin mining.
Read more: How bad is bitcoin for the environment?
Meanwhile, bitcoin received a boost when El Salvador accepted it as legal tender.
Tanzania is the latest emerging economy to adopt crypto following El Salvador’s announcement. Several other countries have also made noise, including Panama, Mexico, Venezuela, Brazil, Nicaragua, Argentina and Malta, ”said Alexandra Clark, trader. at UK-based digital asset broker GlobalBlock.
“The wave of adoption by companies and countries is raising awareness and forcing other more reluctant actors to act. This is especially true among pension providers and wealth managers,” he said. she adds.
Watch: What is bitcoin?
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