Bitcoin’s Epic Run Is Winning More Attention On Wall Street
Signs of a widening embrace across the financial services industry sent Bitcoin to new heights, with the cryptocurrency closing in on $50,000 for the first time before falling back. Bitcoin’s Epic Run Is Winning More Attention On Wall Street
A week after Tesla announced its $1.5 billion investment in Bitcoin, the digital asset continues to make inroads into traditional finance, including news that an investment unit of Morgan Stanley is considering whether to bet on Bitcoin. Canada also approved the first North American Bitcoin exchange-traded fund.
And there’s evidence that more companies are beginning to add services for cryptocurrencies — an asset class that is still lightly regulated and controversial among policymakers. On Thursday, BNY Mellon said it’s formed a new team that’s developing a custody and administration platform for traditional and digital assets.
Mastercard Inc. has said it will begin allowing cardholders to transact in certain cryptocurrencies on its network.
The combination of luminaries like billionaire Elon Musk and powerhouse banks is adding fresh ammunition to Bitcoin’s meteoric gains. The cryptocurrency neared $50,000 in weekend trading before retreating. Prices are up some 40% in February, and were at about $48,000 as of 1:39 p.m. in London on Monday.
“The key for Bitcoin’s path higher is to win over more corporate endorsements,” said Edward Moya, senior market analyst at Oanda Corp. “Bitcoin is no stranger to massive weekend moves and the next several days could easily see some wild swings.”
There remains a fierce debate over whether Bitcoin is a legitimate asset with any real purpose or value. The token has been derided for its role in money laundering and scams, and recently Nassim Nicholas Taleb, author of “The Black Swan,” said he’s getting rid of his Bitcoin.
A currency is never supposed to be more volatile than what you buy and sell with it, Taleb said on Twitter, adding that you can’t price goods in the cryptocurrency. “In that respect, it’s a failure (at least for now).”
Even so, the price trend has been up, and Bitcoin stands as another example of the speculative excesses that are defining this bull market — along with penny stocks and cannabis companies.
There are hints that more Wall Street heavyweights could dip into the crypto market. In an interview with CNBC, JPMorgan Chase & Co. Co-President Daniel Pinto said that client demand isn’t there yet on Bitcoin, but he’s certain that’ll change.
Bloomberg reported that Counterpoint Global, a unit of Morgan Stanley Investment Management, is exploring whether the cryptocurrency would be a suitable option for its investors, according to people with knowledge of the matter. Moving ahead with investments would require approval by the firm and regulators.
“With each major announcement like the one BNY Mellon made, other institutions are spurred to more rapid adoption and deployment of digital assets,” said Patrick Campos, chief strategy officer at Securrency, a developer of blockchain-based financial and regulatory technology, on Friday.
“Tesla’s recent announcement will embolden other large corporates and institutions to accept crypto as not just a worthy asset class, but perhaps even an essential one,” he said.
Bitcoin Keeps Hitting New Highs As Crypto Mania Accelerates
Bitcoin’s incredible rally shows little sign of abating yet after the token jumped past $52,000 for the first time.
The largest cryptocurrency was little changed in Asian trading Thursday at about $52,100 after a fivefold surge in the past year.
Bitcoin’s rally for some is emblematic of speculative froth in financial markets awash with stimulus. The crypto faithful counter that the digital asset is grabbing more mainstream attention, especially after Tesla Inc.’s recent $1.5 billion purchase.
MicroStrategy Inc. boosted its convertible debt sale to buy Bitcoin by nearly half to $900 million and cut the coupon to 0%, making it virtually a straight bet on the price of the cryptocurrency.
MicroStrategy’s step is “a warning sign if there ever was one that things are getting out of hand in the crypto world,” Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte, wrote in emailed comments.
Others take a different view, contending that demand from institutional investors and companies is set to expand, driving further gains.
“There are a number of reasons why Bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and Tesla popularized: moving institutional balance sheets into Bitcoin to hedge against inflation,” said Nicholas Pelecanos, head of trading at NEM.
Activity in Bitcoin futures suggests traders don’t see a sudden end to the crypto rally, with spreads continuing to widen between the active contract and March futures, according to data compiled by Bloomberg.
Shares of Asian crypto-linked companies have advanced, too. Japan’s Monex Group Inc. jumped 11% to hit a 13-year high on Wednesday, while BC Technology Group Ltd. in Hong Kong closed at a record. Both stocks were down Thursday in Asia, though.
JPMorgan Chase & Co. strategists said Bitcoin’s volatility needs to ease to prevent its rally from fizzling. Other commentators see a mania likely to end in a bust akin to the implosion in 2017.
The digital coin’s 60-day realized volatility is around the highest since May last year, though still below the levels seen around the peak of its last boom some three years ago.
JPMorgan Says Bitcoin Rally Unsustainable Unless Volatility Ebbs
Bitcoin’s volatility needs to ease to prevent the token’s rally from fizzling, according to JPMorgan Chase & Co.
Unless swings recede rapidly, the current price of the largest cryptocurrency “looks unsustainable,” strategists led by Nikolaos Panigirtzoglou wrote in a note Tuesday.
Bitcoin has been barreling through records, scaling another peak above $51,000 on Wednesday. Tesla Inc.’s recent $1.5 billion purchase and MicroStrategy Inc.’s plan to expand its holdings of the token by selling $600 million in convertible bonds added to the buzz around cryptocurrencies. On the flip side, some see a mania likely to end in a bust akin to the implosion in 2017.
JPMorgan said Bitcoin’s market value has risen by about $700 billion in the past five months despite an aggregate institutional inflow of only around $11 billion. Limited supply of the token and retail demand may be pushing up prices, Panigirtzoglou wrote.
“Movements since January this year appear to have been more influenced by speculative flows,” the team said.
Bitcoin Hits A New High Of $51.3K As Analyst Declares ‘Historic’ Parabolic Advance
It’s all systems go for Bitcoin as bulls look to cement $50,000 as support and create the “new normal” for BTC/USD.
Bitcoin (BTC) hit new lifetime highs of more than $51,200 on Feb. 17 as it tackled what trader Peter Brandt confirms is a “parabolic advance.”
Bitcoin Enters Uncharted $50,000 Zone
Data from Cointelegraph Markets and TradingView showed BTC/USD passing the $50,000 resistance level again on Wednesday, this time continuing into uncharted territory.
Tuesday had seen Bitcoin hit $50,000 for the first time ever, that level nonetheless failing to hold for more than a matter of minutes.
With its return, the largest cryptocurrency is in a “parabolic advance” — the fourth in its twelve-year history, analysts say.
“Big picture $BTC Bitcoin is undergoing its third parabolic advance in the past decade,” Brandt tweeted alongside an annotated price chart.
“A parabolic advance on an arithmetic scale is extremely rare – three on a log scale is historic.”
Responding, Kraken growth lead Dan Held noted that if counting its initial phase prior to 2012, there have in fact been four parabolic advances.
Brandt added that should the advance be violated, a correction of 80% is “most common” as a bearish consequence. Such behavior was observed in 2018 after Bitcoin peaked at near $20,000 — the market bottomed out at $3,100 one year later.
A “New Normal”?
As Cointelegraph reported, various indicators nonetheless suggest that Bitcoin is far from violating any uptrend, being at the start, rather than the end of its bull run.
“$50,000 #Bitcoin is the new normal,” Blockstream CSO Samson Mow declared on Wednesday.
Discussing the new price highs, others noted that macro factors could converge to create a chain reaction of adoption, which would push Bitcoin further still into price discovery.
“If you think $50,000 a bitcoin is expensive, wait until you hear that the government is about to print $1,900,000,000,000 out of thin air,” popular Twitter account Documenting Bitcoin added.
Data meanwhile showed that Bitcoin had taken the momentum out of altcoin growth with its moves over the last few days, with all of the top ten cryptocurrencies except Polkadot (DOT) seeing sideways price action.
What’s Next After Bitcoin Hits $50K? Another $1K Gain
Analysts are still mostly bullish on the cryptocurrency’s price, even at lofty levels compared with those just a few months ago.
Bitcoin’s (BTC) momentum carried through overnight, pushing upward to a new all-time high above $51,000 just a day after passing $50,000 for the first time.
“It’s not exactly soaring, as it has with other major technical breakouts, but another 3% gain isn’t to be sniffed at,” Craig Erlam, senior market analyst for the foreign exchange broker OANDA, wrote in an email.
In traditional markets, investors were focused on the recent rise in the U.S. Treasury yields to a 12-month high around 1.3% – taken as a sign that bond traders are growing more concerned about future inflation as the economy makes a fuller recovery.
Bond yields sometimes rise when there’s a greater chance of inflation because investors want the extra income as compensation for the extra risk.
It’s also a key focus for cryptocurrency traders because bitcoin has become a popular way for many big investors to bet on faster inflation and a reduction in the U.S. dollar’s purchasing power.
A fresh concern this week is that the winter storm hitting the (usually warm) state of Texas might drive up gasoline prices, contributing to inflation. Crude oil held at over $60 a barrel, near highs not seen in more than a year.
Some investors also see the potential for a growing supply of U.S. Treasury bonds, given President Joe Biden’s push for a $1.9 trillion stimulus plan, which would likely have to be financed through extra borrowing.
Theoretically, an increase in the supply of bonds causes yields to rise, since more investors have to be enticed to buy the securities.
All things being equal, rising yields, while potentially a sign of heightened inflation fears, could make bitcoin incrementally less attractive on a relative basis compared with bonds: ”Momentum funds who bought bitcoin as a hedge against inflation might sell if real yields rise,” Avi Felman, head of trading at BlockTower Capital, told CoinDesk.
On the other hand, a rise in yields might prompt the Federal Reserve to expand its monetary stimulus. The U.S. central bank has been buying $120 billion of bonds a month for most of the past year to help keep interest rates low.
Bitcoin Hits New High Above $51K, Shrugging Off Rising Bond Yields
Rising bond yields are a threat to prices of hedge assets, but bitcoin is soaring as gold falls.
Bitcoin’s dizzying bull run is showing no signs of slowing down despite an uptick in U.S. government bond yields.
The cryptocurrency market leader set a new lifetime high of $51,348 early Wednesday, having penetrated the psychological level of $50,000 on Tuesday for the first time, according to CoinDesk 20 data. Prices have risen by 53% this month alone.
The latest move higher comes on the heels of an announcement by publicly listed company MicroStrategy that it plans to boost its bitcoin stash yet again. The firm announced a $600 million debt sale on Tuesday, which will fund the additional purchases.
The business intelligence firm has been buying bitcoin since August 2020 and is sitting on a profit of more than $2 billion on its holdings.
According to Avi Felman, head of trading at BlockTower Capital, MicroStrategy’s announcement may have been timed to force a break above the critical level of $50,000. The firm made a similar announcement on Dec. 7, following which bitcoin crossed above the then major hurdle of $20,000.
It remains to be seen if the latest move above $50,000 is sustainable, given that U.S. bond yields are rising and pushing gold lower. Bitcoin is widely considered a hedge against inflation like gold.
The yield on the 10-year Treasury note clocked a 12-month high of 1.33% early today and has risen by over 20 basis points this year. Gold is currently trading at a two-week low of $1,790 per ounce.
Bitcoin, however, is showing resilience and may come under pressure if and when real or inflation-adjusted yields rise.
As of Tuesday, the 10-year bond was yielding -1% in inflation-adjusted terms, according to data provided by the U.S. Department of the Treasury.
‘”Momentum funds who bought bitcoin as a hedge against inflation might sell if real yields rise,” Felman told CoinDesk.
Perceived store-of-value assets typically move in the opposite direction to real bond yields. For instance, gold rallied more than $600 to a record price of $2,075 in the five months to August, as the U.S. 10-year real yield fell from 0.55% to -1.08%. Bitcoin has charted a staggering rally over the past 11 months alongside a continued drop in yields.
However, yield rises may be limited, with the Federal Reserve running an open-ended bond purchasing program and inflation likely to get a lift from rising oil prices.
At press time, bitcoin is trading around $50,946, up 3.6% in 24 hours.
Bitcoin’s $50,000 FOMO Is Overpowering Bankers
The Fear Of Missing Out is rippling through business and finance. But not everyone can be Elon Musk.
JPMorgan Chase & Co. traders are said to be “salivating” over Bitcoin. It’s easy to see why. The cryptocurrency’s price has shot past $50,000, double where it was on Christmas Day, creating a powerful centrifugal force of excitement — and real money judging by crypto exchange Coinbase Inc.’s reported profit margins of 20%.
Never mind that Bitcoin’s persistent flaws, from relatively slow transaction speeds to wild price swings, make it a poor store of value or medium of exchange. The promise of life-changing wealth during lockdown is a strong draw for eager punters.
Beyond the memes, wealthy financiers and billionaires are loudly loading up on digital gold, drowning out any skeptical voices. Elon Musk’s Tesla Inc. has plowed $1.5 billion into Bitcoin, and wealthy hedge-funders like Paul Tudor Jones and Stanley Druckenmiller are on board.
It’s hard to heed “boomer” warnings comparing the craze to 17th-century Dutch tulip mania when the likes of ARK Investment Management’s Cathie Wood are egging firms on to buy.
No wonder the world of “legacy” corporate finance is salivating. The mood echoes how Citigroup Inc.’s former boss Chuck Prince depicted the peak of the subprime bubble: “As long as the music is playing, you’ve got to get up and dance.” Nowadays it seems everyone is adding crypto to their dance card.
MasterCard Inc. and Bank of New York Mellon Corp. have announced crypto plans, while JPMorgan Co-President Daniel Pinto says his bank will “get involved” eventually. Some investors say they’ve bought crypto while hating every minute of it — the very definition of the Fear of Missing Out.
Hard as it is to resist crypto FOMO, it’s still worth thinking about rules of engagement and taking a careful approach. One principle might be to remind companies of their fiduciary duty to shareholders. Simply sticking Bitcoin on the balance sheet like Tesla is a poor hedge, as its price tumbles in times of market stress have shown.
It’s not a common medium of exchange either, with merchants amounting to an estimated 1% of crypto transactions between mid-2019 and mid-2020.
Most companies with a dollar cost base selling goods other than luxury cars have no real need to hold a pile of cryptocurrencies. Copying Musk is for the brave — it only works if the price keeps going up. Corporations should stick to their financial lane, not swerve onto Tesla’s. Most investors prefer for excess cash to be reinvested in operations, returned or managed appropriately.
For bankers, acting as a broker for crypto clients could certainly fit into their job description. However, some caution is warranted here, too.
Jean Dermine, a professor of banking at Insead, reckons Bitcoin touches on several areas of risk: operational risk, such as client identification and the potential for fraud; legal, especially with a decentralized global asset; and regulatory risk, given a history of lawsuits and government crackdowns in the sector. And then there’s the need to protect consumers too.
So while trading Bitcoin might make business sense, the risks should make it expensive to do so, with high levels of loss-absorbing capital set aside to back it.
Switzerland, for example, has reportedly guided toward a flat bank risk weight of 800% for Bitcoin. That helps explain why banks have so far kept one step removed from the asset, whether via futures or taking on crypto exchanges as clients.
While treading cautiously on Bitcoin, banks would do well to take a more strategic approach to the whole crypto landscape.
The future of money hasn’t been decided yet, and “legacy” finance may be better equipped to co-opt or compete against such assets than people think.
Banks have been toiling away at proprietary blockchain projects, such as JPMorgan’s JPM Coin, which could save money on payments. They are natural partners for central banks’ planned digital currencies, like the digital euro.
Finally, a principle for regulators. They should take a balanced approach to financial innovation without letting systemic risks get out of hand. Crypto exchanges are better regulated than they used to be, and consumer warnings are issued frequently. But if Bitcoin became deeply embedded in the global financial system, the question would inevitably arise over what to do if an asset with no government backer crashed.
When the music stopped for Citi and others in the 2007-2008 financial crisis, central banks joined hands to throw the financial system multiple lifelines — helping spur the creation of Bitcoin itself. It would be a very odd look for the Bitcoin aristocracy to be bailed out by its arch-nemesis, central bank fiat money.
Bitcoin is playing an irresistible tune, but for many in the corporate-finance world, the best dance right now should be baby steps.
Banks Increasingly Interested In Bitcoin, Says Elliptic Co-Founder
Several financial institutions in the U.S. are “are seriously considering launching some type of cryptocurrency service,” an Elliptic co-founder said.
Global banking institutions have been expressing more interest in Bitcoin (BTC) as the cryptocurrency consistently breaks new all-time highs, according to a new report.
Tom Robinson, co-founder of major British crypto firm Elliptic, told The Telegraph on Wednesday that his company saw a massive surge in Bitcoin-related inquiries from global banks.
The executive noted a wave of Bitcoin-associated demand from United States-based banking institutions over the past two months. According to Robinson, several financial institutions in the U.S. “are seriously considering launching some type of cryptocurrency service.” British banks were the most reserved in terms of the demand’s uptick, the executive reportedly said.
Founded in 2013, Elliptic provides crypto intelligence services to high-profile customers like government agencies and cryptocurrency exchanges. The company works with state authorities including the U.S. Federal Bureau of Investigation.
Megan Prendergast Millard, managing director at risk and compliance firm Guidepost Solutions, believes that the growing Bitcoin trend among traditional financial institutions is natural amid surging adoption.
Prendergast Millard reportedly said that it was logical for banks to begin opening up to digital currencies in a similar way as crypto exchanges in order to keep millennials and Generation Z on board.
“Financial institutions are looking to keep their customers and they need to think about who those people are,” Prendergast Millard noted.
The new report comes shortly after Bank of New York Mellon, the oldest bank in the United States, announced plans to hold and trade Bitcoin and other cryptocurrencies as an asset manager on behalf of its clients.
Roman Regelman, senior executive vice president and head of digital at BNY Mellon, believes that the full incorporation of digital assets into the traditional banking infrastructure will take another three to five years.
With Bitcoin Breaking $50,000, Even Wall Street Skeptics Must Pay Attention
Signaling a shift in sentiment, the surging cryptocurrency is finding its way into portfolios and balance sheets.
For many professionals involved in the traditional financial system, it’s been tempting to just ignore Bitcoin and hope it goes away. To them the digital currency makes no sense as an investment or a currency; they note it’s not backed up by any asset, underlying business, or government.
Some call Bitcoin a digital tulip, a reference to the surge and eventual crash of flower-bulb prices in the Netherlands in the 17th century.
That posture has gotten increasingly hard to maintain, however. Set aside what you think of the case for Bitcoin. The point is that it’s here, and it’s worth in the neighborhood of $50,000 a coin, up from $4,900 last spring.
On Wall Street, nothing commands attention like an asset your rivals made money on when you didn’t. And even if you did try to avoid it, Bitcoin has begun digging its way into portfolios, often indirectly.
Elon Musk, co-founder of Tesla Inc. and the world’s richest man, has long been a cheerleader for cryptocurrencies. On Feb. 8, Tesla revealed it had purchased $1.5 billion in Bitcoin to hold on its balance sheet. (The company also plans to accept it as payment for its electric cars.)
That’s just a fraction of its $19.4 billion in cash and an even smaller part of the company’s market value of about $750 billion. But it still makes Tesla—a constituent of the S&P 500 and a top holding of many index funds—a little bit of a bet on Bitcoin.
Tesla isn’t the first to put some of the cash on its balance sheet into cryptocurrency. Software maker MicroStrategy Inc. did so last year to the tune of over $1 billion, more than a third of the company’s market value at the time the purchases were announced.
It’s now doubled down, announcing plans to sell an additional $900 million of convertible bonds and use the proceeds to purchase even more of the cryptocurrency.
Chief Executive Officer Michael Saylor explained the purchases last year by arguing that the Federal Reserve’s stimulative policies are degrading the value of the dollar, making cash on its balance sheet seem to him like a “melting ice cube” compared with the limited supply of Bitcoin.
Predictably, MicroStrategy’s stock now often moves in response to Bitcoin prices, which is a little weird for a company previously known for cloud computing and business intelligence software.
Many corporate treasurers and chief financial officers are unlikely to follow Musk’s and Saylor’s lead. Bitcoin is prone to sudden plunges, often on the weekends when few are paying attention. The average CFO isn’t interested in waking up to a double-digit selloff in an asset that’s supposed to be part of the company’s cash cushion.
Shareholders might start to wonder, if the company can think of nothing better to do with the money than bet on crypto, why it doesn’t just pay them a dividend or buy back some stock.
Still, these public companies’ embrace of Bitcoin seems to signal an important shift in sentiment. Consider the change in tune that’s occurred at JPMorgan Chase & Co. over the years. In 2017, when Bitcoin was trading for less than $4,600, CEO Jamie Dimon said he’d fire anyone at his bank “stupid” enough to trade the cryptocurrency.
But life comes at you fast. This month, co-President Daniel Pinto said on CNBC the bank will trade Bitcoin if client demand gets strong enough, and he’s certain it will.
While it’s baby steps for now, crypto is clearly becoming more than a sideshow within finance and corporate America. And that has potentially big implications. Cryptocurrencies once served as sort of a pressure valve for investors’ speculative impulses.
If the steam inflated a bubble, at least it was a quarantined bubble that posed very little risk to the rest of the system and economy—as opposed to, say, how the housing bubble triggered the global financial crisis.
One of the traditional selling points of Bitcoin has been its reputation as an uncorrelated asset—in other words, an investment that won’t take it on the chin when the stock market tanks, because it’s so detached from the fate of corporate America and Wall Street.
That notion looked a little dubious when the value of Bitcoin sank more than 50% during the pandemic-triggered bear market in stocks in 2020. And it still seems dubious as Bitcoin has spiked in recent months, along with the more speculative and euphoric corners of the equity market.
The more Bitcoin lands on corporate balance sheets, and the more it’s seen as part of the same bucket of tech investments that have been driving the stock market, the less it will look like any kind of a hedge or an isolated asset class.
That means the link between the two could grow stronger and could mean turbulence in Bitcoin will lead to (or at least coincide with) turbulence in the stock market.
Currently, Bitcoin’s realized volatility—a measure of how big its price swings are—is almost five times that of the S&P 500 over the past 20 sessions. It’s almost twice as volatile as Tesla itself, a stock that’s famous for its wild price movements.
Perhaps the embrace of Bitcoin by corporations and Wall Street will help the cryptocurrency mature and calm its price swings. Or perhaps not, considering crypto is still an investment beloved by scammers and hackers. Never mind the millions of dollars of digital wealth lost because of forgotten passwords or missing hard drives.
And that’s before we even get to Dogecoin, another cryptocurrency Musk has touted lately. Named after a dog meme popular on social media, it’s widely considered a joke. Probably the best thing Dogecoin has going for it is a viral jingle on TikTok about “taking Dogecoin to the moon.”
The earworm does offer some food for thought: “You may have studied the economy for seven years in college, but no one guessed that Bitcoin would be $30,000. So basically anything can happen at this point.”
True. And it’s about $50,000 now. Wait, make that $51,000….
Crypto And Blockchain Investments Have Already Doubled 2020’s: KPMG Report
Investors now have a better understanding not only about crypto assets but also the operational and procedural side of crypto, a new report states.
Crypto and blockchain investments continue to grow thanks to ever-rising investor interest, according to a new report from Big Four accounting firm KPMG.
Titled “Pulse of Fintech H1 2021,” the study covers global investment activities in different financial technology verticals for the first half of the year. It details 2,456 investment deals worth $98 billion made between January and June. One of the top fintech trends for 2021 is the explosive growth in the crypto and blockchain investments, the report reads.
The first six months of 2021 saw 548 investments activities, including venture capitals, private equities, and mergers and acquisitions in the blockchain and cryptocurrency sectors. The total value of investments during the first half of the year is $8.7 billion, already doubling the total value of 580 investment deals made during 2020, worth $4.3 billion.
Companies that raised more than $100 million in funding rounds, including BlockFi, Paxos, Blockchain.com and Bitso, led the growth in investment volume.
“Cryptocurrency and blockchain are exploding globally,” said KPMG global fintech co-leader Anton Ruddenklau, adding:
“There’s so much happening in the space right now, between the eCNY project running in China, Facebook’s Diem, a number of ecosystem initiatives — not to mention all the different trading platforms raising money. Digital currencies and virtual assets are a big, big topic of conversation. I think for the rest of this year at least, crypto will be a very hot ticket for investors.”
The study points to rising investor awareness as a key driver of the growth in investment. Investors now have “a better understanding not only about crypto assets, but also the operational and procedural side of crypto — from custody and storage to storekeeping and the competitiveness and maturity of service providers.”
KPMG predicted in the report that the cryptocurrency space would continue to mature, while the distinction between cryptocurrencies and blockchain technologies would get stronger. Nonfungible tokens (NFT), a key focus during the first half, will contribute to the evolution of crypto exchanges in the form of NFT-focused trading platforms.
The report expects a further focus on regulatory frameworks for the rest of the year. One specific case, India, will impact the whole ecosystem should it regulate cryptocurrencies as an asset class in the second half of 2021.