Today is the last day of March and, with the aim of getting the month of April off to a good start, today we will tell you what were the most outstanding crypto events and news for Bitcoin during the month.
March for Bitcoin: A good month?
Bitcoin started with a valuation around $ 56,000, however it has undoubtedly been quite a busy month for crypto investors as volatility and resistance at key levels shone through.
Today we will tell you some of the key events that were key in March 2021 and that, therefore, could affect crypto in the coming months.
Instability and crypto resistance that have raised concern
As we mentioned previously, Bitcoin started the month with a price around $ 56,000. Nonetheless, throughout the month it tested lows around $ 50,000 as it struggled hard to break above $ 60,000.
And while it did so once on March 13, the level has offered key resistance for the crypto leader. In general, the concern that has reigned in the crypto market during March is that Bitcoin could face a much more significant correction.
However, despite the instability in its price, this month Deutsche Bank Research, the financial research subsidiary of Deutsche Bank, issued a report dedicated exclusively to Bitcoin.
The report states that «in terms of total currency in circulation… Bitcoin is the third largest in the world, after the US dollar and the euro». Yes, according to Deutsche Bank, this month Bitcoin was positioned as the third largest currency in the world.
Institutional investors lose their appetite, but the supply crisis continues
On various occasions throughout the month, from CryptoTrend we reported how various indicators were showing a significant reduction in investor appetite for Bitcoin.
In particular, in the middle of the month, JPMorgan released some rather revealing figures. The institution’s data concluded that, while during the last quarter of 2020 institutional investors acquired 306,658 BTC compared to 205,444 bought by retailers; So far this quarter, retailers have bought 187,426 BTC compared to 172,684 for institutional investors.
Likewise, the latest report from CoinShares found that the flow of money to Bitcoin decreased by approximately $ 79 million to $ 21 million over seven days.
“Investor appetite for digital assets has waned in recent weeks as volatility remains high and price is trading sideways,” CoinShares wrote in the report.
But, even with a decrease in appetite, on March 25, Willy Woo, co-founder of Glassnode, alerted on Twitter that the supply of Bitcoin continues to decline to the point of having reached a 3-year low.
And, as we will see below, the appetite of institutional investors may have diminished, but more and more large firms are joining the crypto market.
Large Banking Institutions Announce Bitcoin Investment Products
A wide variety of relevant announcements took place in March that will undoubtedly define the future of Bitcoin.
On March 10, John Waldron, director of operations at Goldman Sachs, assured that the company is studying how to meet the growing demand for Bitcoin. However, he explained that regulations are an obstacle.
And, just today to close March with a flourish; A senior executive of the institution assured CNBC that Bitcoin will soon be available to its customers.
“We are working closely with teams across the company to explore ways to provide thoughtful and appropriate access to the ecosystem.. for private equity clients, and that’s something we hope to offer in the short term“CNBC quoted. The launch is expected to be during the second quarter.
And Goldman Sachs is not alone. In March Morgan Stanley also reported the launch of three funds that allow Bitcoin ownership from April. It is worth noting that, to access, you must have an accredited investor status. In addition to having equity in Morgan Stanley valued at $ 2 million or more and maintaining a certain account history.
Visa, Tesla, PayPal, and even governments demonstrate their interest in Bitcoin
As if Goldman Sachs and Morgan Stanley weren’t enough, three more announcements took place in March that shook the entire crypto market but especially Bitcoin.
In the middle of the month, Alfred Kelly, CEO of Visa, assured that the company is looking to allow the purchase of Bitcoin with Visa credentials. And just two days ago, Visa announced that it would be piloting a new program. This will allow its partners to use the crypto USD Coin to settle transactions on their payment network, according to Reuters.
Likewise, Elon Musk advertisement on March 24 that Tesla would be allowing its customers in the United States to purchase an electric car using Bitcoin. But, as if that were not enough, he assured that he will keep the Bitcoins that he receives instead of converting them to fiat currencies.
And just yesterday, PayPal announced the launch of Checkout With Crypto, a new service that will allow its customers in the United States to pay with crypto.
But, if all of the above does not show you that Bitcoin is in full adoption phase; We tell you that also in March Robert Gutmann, CEO of NYDIG, assured that different sovereign wealth funds have shown interest in investing in crypto, especially Bitcoin.
Debate over Bitcoin’s impact on the environment gains steam once again
And last but not least; During the month of March, the debate on the environmental impact of Bitcoin gained momentum as Bill Gates lifted the alerts.
That’s right, on March 11, Bill Gates assured in an interview that the electricity consumption of Bitcoin should concern us all. Basically Gates claims that most of the Bitcoin miners use fossil energy sources.
Consequently, if miners migrated to green energy sources, the environmental impact of Bitcoin would be greatly diminished.