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The price of the world’s most valuable cryptocurrency soared nearly 10% Wednesday morning to around $ 55,000, following news that the investment firm founded by billionaire George Soros owns bitcoin.
Soros, who is famous for making a lot of money on traditional currency investments, has reportedly been trading bitcoin in recent months.
And the head of Soros Fund Management says that bitcoin has even more long-term potential: “I’m not sure bitcoin is seen here only as a hedge against inflation. It has crossed the chasm to become mainstream.” said Dawn Fitzpatrick, CEO and Chief Investment Officer. from Soros Fund Management, in an interview with the Bloomberg Invest Global Summit on Tuesday night.
Fitzpatrick told Bloomberg that Soros Fund Management had “a few coins … but not a lot”.
Bitcoin and other cryptos have risen sharply this year, despite concerns about a crackdown in China and the possibility of tighter regulation in the United States. This is thanks to factors such as rising interest rates and the fact that more and more large financial companies are investing in digital currencies.
The value of all bitcoin in circulation is now back above $ 1 trillion, more than the market value of Facebook (FB). And all cryptocurrencies together represent $ 2.3 trillion in circulation, corresponding to the market value of the most valuable stock: Apple (AAPL).
El Salvador recently became the first country to adopt bitcoin as legal tender. Bitcoin fans argue that the cryptocurrency should benefit in the short term from inflationary pressures and higher bond yields, as government-backed paper currencies like the dollar, euro and yen lose some of their power. purchase as rates rise.
Still, several prominent business leaders and investors have expressed reluctance to embrace bitcoin and other cryptocurrencies. Mega billionaire Warren Buffett continues to criticize bitcoin. And so did JPMorgan Chase (JPM) CEO Jamie Dimon in a recent appearance on the Axios HBO TV show.
But the fact that the Soros family office, which manages the billionaire philanthropist’s money, now publicly has some skin in the crypto game adds to the industry’s legitimacy.
Crypto bulls also applauded after US Bancorp (Usb) this week announced plans to offer more cryptocurrency custody services to large institutional investors who want to trade bitcoin.
“Investor interest in cryptocurrency and demand from our clients for fund services has increased significantly over the past few years,” said Gunjan Kedia, vice president of US Bank Wealth Management and Investment Services in a statement. Press. “Our fund and institutional custody clients have ramped up their plans to offer cryptocurrency.”
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