Bitcoin ‘should be entry point for digital investment’, says Fidelity
06:25, 2 February 2022
After a difficult January, bitcoin (BTC) has kicked off February trading within the $38,000–$39,000 range. The coin is now trading some 17% below its January open of $46,312, but some 16% above the six-month low of $33,184 from 24 January.
Bitcoin is now 44% lower than from its all-time high recorded in January, but institutional investors are not giving up on the world’s oldest cryptocurrency just yet.
For example, the asset-management arm of Boston, US-based financial giant Fidelity Investments is the fourth-biggest asset manager in the world, with an estimated $3.319trn (£2.45trn, €2.937trn) assets under management (AUM) and over 27 million customers worldwide. Its Fidelity Digital Assets segment provides enterprise-grade custody and execution services for institutional investors.
As such, its researchers have made quite a pro-bitcoin statement. In a report entitled Bitcoin First, Fidelity Digital Assets director of research, Chris Kuiper, and research analyst Jack Neureuter, argue that bitcoin should still be regarded as “an entry point for investors” and that it constitutes “a superior form of money”.
They also stated that “Bitcoin is best understood as a monetary good, and one of the primary investment theses for bitcoin is as the store of value asset in an increasingly digital world.”
According to CoinMarketCap.com, there are currently over 17,000 cryptocurrencies/tokens/coins, all of which constitute types of digital assets.
Yet among these, the Fidelity Digital Assets report authors Kuiper and Neureter asserted that: “No other digital asset is likely to improve upon bitcoin as a monetary good because bitcoin is the most (relative to other digital assets) secure, decentralised, sound digital money, and any ‘improvement’ will necessarily face trade-offs.”
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Other crypto news:
- Music and arts festival Coachella will auction 10 lifetime passes as non-fungible tokens (NFTs) in the form of a digital “Coachella Key”.
The sale will kick off on Friday 4 January on the FXT US exchange, which Coachella says it has partnered with to “build an environmentally friendly marketplace” via Solana. A portion of the proceeds from each item will be donated to Give Directly, Lideres Campesinas and the Find Food Bank, with royalties to support the artists and further NFTs planned.
As Coachella’s general-admission tickets start at $449 (now $549 as the other passes have sold out), the lifetime tickets are expected to be actioned for hefty prices.
Quote of the day:
Michael Saylor is co-founder, chairman and CEO of MicroStrategy, the biggest corporate owner of bitcoin. As a renowned crypto believer, when Saylor was asked whether his company was selling BTC during a recent market plunge, he told Bloomberg: “Never. No. We’re not sellers. We’re only acquiring and holding bitcoin, right? That’s our strategy.”
MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy
— Michael Saylor⚡️ (@saylor) February 1, 2022
Top coins by market capitalisation
As of 9.00 GMT:
- Bitcoin (BTC) was flat, losing 0.32% and trading at $38,449.36.
- Ether (ETH) was down 0.5% and trading at $2,757.97.
- Binance coin (BNB) was trading at $380.82 – 0.4% lower than 24 hours ago.
Winners and losers
- Bitfinex’s LEO token surged by 10.05% over the past 24 hours to an all-time high of $4.54.
- Cosmos (ATOM) was the biggest weekly loser among the top 50 virtual tokens, losing 19.37% in the period.
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