Forbes - Bitcoin, Tesla To Mars?

TESLA TURBOCHARGES BITCOIN

The crypto market got a major jolt on Monday morning when Tesla announced in a filing with the Securities and Exchange Commission that it invested $1.5 billion in bitcoin this year and said it plans to start accepting bitcoin as payment for its products. As expected, the price of bitcoin quickly climbed. It surged more than 10% from $39,235 to top $44,000 in less than an hour. By mid-afternoon Monday (EST), it set a new all-time high above $48,000.

This latest surge has crypto-bulls now eyeing $50,000. However, it will not be easy. Mark Warner, head of trading at BCB Group, noted that this new threshold is “a key psychological level,” stating that it would likely “offer some resistance due to profit taking.” However, if it passes this latest hurdle, bitcoin could be looking at a breakout up to $75,000 according to Nicholas Pelecanos, head of trading at NEM.

"BIENVENIDO A MIAMI" BITCOIN

Over the past 12 months there has been a stampede of bitcoin enthusiasts migrating to Miami in search of a friendly landing spot to ride out the pandemic. Now, it appears that the city is getting ready to roll out the welcome mat. Striving to combine the financial elements of New York City and the technology character of San Francisco into a South Florida finance and tech oasis, Mayor Francis Suarez is bringing a different attitude and policy outlook on innovation. A large element of his focus is bitcoin, which he believes will be the “biggest story of the next few years.” In conversation with a Forbes contributor, he noted that there are three things that he wants to do with bitcoin: let employees take a portion of their salaries in bitcoin, allow residents to pay taxes with crypto and include bitcoin as a part of the city’s investment portfolio.

However, despite this positivity and focus it will not be smooth sailing. On Thursday night city commissioners voted to reject the mayor’s request to “to vote to begin using bitcoin without hesitation” in favor of studying the cryptocurrency more carefully before moving forward.

AMERICA’S OLDEST BANK DIVES INTO CRYPTO

Banking giant BNY Mellon, which boasts around $2 trillion in assets under management, has announced plans to hold bitcoin and other cryptocurrencies on behalf of its clients. The move comes amid what the BNY executive heading up its digital assets unit, Mike Demissie, called an "uptick in institutional interest" in the emerging bitcoin and crypto asset class. It is important to note that this is not just a bitcoin play, as BNY Mellon's digital asset unit will also cover stablecoins, such as USDC, as well as tokenized securities and real assets. Eventually, it's also expected to include central bank issued digital currencies (CBDCs).

BNY’s announcement is just the latest example of the impact made by the U.S.’ national banking regulator, the Office of Comptroller of the Currency, who issued an interpretive letter in July 2020 stating that banks under its remit could provide custody services for digital assets.

ELSEWHERE

How Mastercard’s Crypto Strategy Is Distinct From Its New Stablecoin Plans [The Block]

First North American Bitcoin ETF Approved by Canadian Securities Regulator [CoinDesk]

JPMorgan Will Get Involved With Bitcoin if There’s Enough Demand, Says COO [Decrypt]

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