Last week, the biggest price action was due to uncertainties surrounding the stable coin Tether, which drove Tether price down to as low as 90 cents. Traders sold Tether and bought cryptocurrencies such as Bitcoin, which temporarily drove Bitcoin price up to $7,400 at one point.
However, the FUD quickly dissipated and Tether price is now back to 98 cents, or 2% discount to the par value of $1. Bitcoin price also went back to $6,500, the range that it has been trading since September.
The biggest news regarding the development of cryptocurrency is that Fidelity, the fifth largest asset manager in the world, announced that it is going to launch a platform for trading cryptocurrency.
Named Fidelity Digital Assets, the new company will provide institutional-grade custody solutions, a cryptocurrency trading platform and advising services. Mike Novogratz’ crypto fund Galaxy Digital is going to be the first client of Fidelity Digital Assets.
Like we have been saying for the past months, established financial institutions are actively building their own infrastructure solutions instead of just investing in companies doing the same thing.
This is a vote of confidence that these companies are seeing wider adoption in the future and that cryptocurrency is a legitimate asset class that belongs in every investor’s portfolio.