Markets Live, Tuesday 13 April, 2021

Bitcoin remained above $US60,000 ($78,804) and near a record high this morning as reduced supply and increasing demand from new types of investors fuelled the crypto fire.

The world’s most popular cryptocurrency rose to $US60,786.46 today – just short of the $US61,780.63 record set last month – continuing a strong run over the past two weeks.

Simon Peters, eToro’s market analyst and crypto expert, said the gains come down to a number of factors.

He said there had been new demand from institutional investors and wealth managers offering cryptoasset exposure to clients, while a decline in on-exchange reserves has also reduced supply as more investors move the currency to their own wallets.

Mr Peters also noted that global asset manager State Street has also signalled its intent to join the crypto market. State Street has forged a deal to lend its trading technology to start-up Pure Digital, which aims to be the main institutional platform for bitcoin.

“Slated to go live in “mid-2021″, this launch is yet another example of major financial firms exploring cryptoassets, and looking to play a more substantial role in the market,” MR Peters said.

“Following the likes of BNY Mellon, Goldman Sachs and Morgan Stanley, this year could be a momentous one for the adoption and appreciation of cryptoassets in not only the retail, but institutional market too.”

The rise of Bitcoin comes ahead of the public listing of US crypto exchange Coinbase this week.

Coinbase – one of the world’s largest digital asset exchanges – will be the first crypto exchange to go public when it lists on the Nasdaq on Wednesday. It will not raise any new capital in its IPO, instead opting for a direct listing.