BNY Mellon’s approval by the SEC for its crypto custody proposal has sparked renewed interest from institutional investors in Bitcoin. With Bitcoin’s current price hovering around $65,320, this development has the potential to enhance its stability by instilling confidence among investors.
By segregating crypto wallets from traditional bank assets, BNY Mellon offers an additional layer of protection for digital assets, thus opening up possibilities for wider adoption. This shift may set the stage for Bitcoin to witness sustained growth as institutional players become more prominent in the cryptocurrency arena.
SEC Approves BNY Mellon’s crypto Custody Proposal
Recently, BNY Mellon received a nod of approval from the SEC for its proposal outlining the custody of Bitcoin and Ether assets, ensuring the safeguarding of these assets in case of bank insolvency. The SEC’s non-objection implies that BNY Mellon can now reflect the value of these assets on its balance sheet.
This setup entails the segregation of crypto wallets and bank accounts from other assets held by the bank, thereby securing client funds in case of bankruptcy.
SEC Chair Gary Gensler indicated that any bank employing a similar setup would receive similar approval. This decision is viewed as a means to instill trust in digital assets among institutional entities, potentially leading to increased long-term investments in cryptocurrencies such as Bitcoin.
- SEC approval ensures protection of assets.
- BNY Mellon’s approach isolates crypto wallets from bank assets.
- Heightened confidence from institutions could drive up Bitcoin’s value.
Michael Saylor Endorses BlackRock’s Optimistic View on Bitcoin
Michael Saylor, the co-founder of MicroStrategy, echoed BlackRock’s positive outlook on Bitcoin. Robbie Mitchnick, BlackRock’s head of digital assets, described Bitcoin as a scarce, global, decentralized asset with both risk-on and risk-off attributes, drawing attention amidst concerns about fiat currency devaluation and political unrest.
Additionally, significant inflows of nearly $100 million were recorded in BlackRock’s spot Bitcoin ETF, surpassing competitors like Bitwise and Fidelity.
The SEC’s approval of BlackRock’s Bitcoin options further emphasizes the growing interest from institutional investors.
- BlackRock praises the unique value of Bitcoin.
- BlackRock’s Bitcoin ETF receives $100 million in inflows.
- Institutional demand elevates Bitcoin’s global recognition and price potential.
Hut 8 Introduces GPU-as-a-Service for AI Developers, Transitioning from Bitcoin Mining
On September 26, Hut 8 unveiled a GPU-as-a-service initiative in collaboration with AdvizeX, providing AI developers with access to HPE supercomputers equipped with 1,000 Nvidia H100 GPUs. This service offers cloud-based GPU access to developers who may not have the means to set up their own clusters.
Following the Bitcoin halving in April 2024, Hut 8 shifted its focus from Bitcoin mining to AI services in response to escalating competition in the mining sector.
- Hut 8 shifts focus from Bitcoin mining to AI services.
- Cloud-based GPU access supports AI developers.
- The transition could stabilize Hut 8’s Bitcoin operations, influencing long-term sentiment toward BTC.
Daily Technical Analysis: Bitcoin (BTC/USD) – September 27, 2024
Bitcoin (BTC/USD) is currently trading at $65,320, marking a 0.26% increase as it tests crucial resistance levels, indicating robust bullish momentum.
The cryptocurrency is trading above the pivot point of $64,808, suggesting a potential breakout after forming a double-top pattern around this level.
If the upward momentum persists, immediate resistance levels are situated at $65,862, followed by higher targets at $66,539 and $67,152.
On the downside, immediate support is present at $64,170, with further support at $63,493 and $62,688. The 50-day Exponential Moving Average (EMA), at $63,935 currently, represents a critical support level, reinforcing the bullish sentiment as long as prices remain above it.
Technical indicators paint a favorable picture for BTC, with the Relative Strength Index (RSI) standing at 65, indicating that while Bitcoin is nearing overbought territory, there is still room for upward movement.
A sustained close above the $64,800 pivot point could propel the cryptocurrency towards the next resistance at $65,862 and potentially beyond, aligning with the prevailing bullish market sentiment.
If Bitcoin breaches below $64,800, a significant reversal could occur, targeting the $64,170 support level or potentially deeper corrections towards $63,493.
Traders are advised to monitor the price action around the pivot point to discern the next market move.
