Prices of the world’s biggest cryptocurrency, bitcoin, rallied to regain the $58,000 level on Monday after digital payments giant Visa Inc said it would allow the use of cryptocurrency USD Coin to settle transactions on its network.
The USD Coin (USDC) is a stablecoin cryptocurrency, whose value is pegged to the US dollar.
A Reuters report said Visa launched the pilot programme with payment and crypto platform Crypto.com and plans to offer the option to more partners.
The digital asset was trading at $58,005.54, up 3.5% at 4.10pm IST, after moving in the $54,719.23-58,230.98 range over the past 24 hours, as per CoinGecko. Bitcoin is more than 5% away from its lifetime high of $61,711.87.
Meanwhile, prices also got a boost after the container ship blocking the Suez Canal was at least partially refloated. Global stock indices were also on a strong footing in the wake of the development.
Bitcoin had slumped below the $51,000 level last week amid a downturn in global equities.
“This was partially due to the quarterly rebalancing of institutional investors, increased uncertainty regarding Brazil’s new covid variant, and interest rates that are still on the rise,” blockchain data and intelligence provider Glassnode said in a note.
According to Glassnode, as institutional money has started to pile into the crypto space, investors can no longer disregard the narrative and events driving the global financial markets.
Experts say that currency investors should monitor the US Federal Reserve’s statements on its future policy outlook and track inflation data for cues on movements in the crypto market.
Meanwhile, ethereum, the world’s second-biggest cryptocurrency, was trading at $1,767.58, up 3.4% on Monday.
In India, industry professionals have welcomed the ministry of corporate affair’s recent circular to include cryptocurrency investments and holdings as part of the companies’ balance sheets.
“We see this new amendment as a welcome step towards positive regulations. Not only will it give investors and savers more confidence to buy bitcoin and other assets, it will also promote job creation. With this additional point of clarity, Indian blockchain entrepreneurs in different sectors such as healthcare and agriculture will be better able to attract investors and venture capitalists,” said Rahul Pagidipati, CEO, ZebPay.