Bitcoin Surges Past $106,000 as SEC Move Boosts Institutional Interest
Bitcoin's price has surged past $106,000, with a nearly 4% increase in the last few hours. This comes as the SEC's rescission of the SAB 121 rule is expected to facilitate institutional inflows into Bitcoin, boosting its price. Standard Chartered has raised its Bitcoin price projection to $130,000 by March 2023.
Geoff Kendrick, head of research for currencies and digital assets at Standard Chartered, anticipates increased institutional interest in Bitcoin following the SEC's move. This aligns with the growing institutional demand for Bitcoin, which supports its narrative as a solid investment and long-term store of value.
The rescission of SAB 121 will allow traditional financial institutions to manage digital assets more easily, potentially increasing their participation in Bitcoin. However, there is currently no specific information on traditional financial institutions planning to increase their involvement in Bitcoin and cryptocurrencies due to this lifting of guidance.
Exchange-traded funds (ETFs) have registered record inflows, with Bitcoin being the main beneficiary. Additionally, an executive order signed by Donald Trump on cryptocurrencies is expected to provide greater confidence to market investors and users, potentially boosting Bitcoin's price growth. Technological deflation facilitated by artificial intelligence could also contribute to Bitcoin's price increase.
With the Federal Reserve keeping interest rates unchanged until March 2023, and Bitcoin's price projection raised to $130,000 by March 2023, the cryptocurrency market appears bullish. As institutional interest grows and traditional financial institutions find it easier to manage digital assets, Bitcoin's status as a long-term store of value is further solidified.
