Bitcoin’s price spiralled on Wednesday as the cryptocurrency continues to receive support from investors amidst the Feds Reserve decision to keep interest rates close to zero this year.
Bitcoin (BTC) was trading around $57,745.58 as of 20:00 UTC (4 p.m. ET). Climbing 3.68% over the previous 24 hours. Bitcoin’s 24-hour range: $54,201.70-$58,078.51.
After consolidating for a while, both Bitcoin (BTC) and Ethereum (ETH) prices spiralled as the overall cryptocurrency market cap surged 5% moving past $1.80 trillion.
The price of BTC has doubled this year, due to growing demand from institutional investors who are looking for an asset that might hold its worth if the dollar’s purchasing power declines.
During the Federal Reserve officials’ meeting on Wednesday, they reaffirmed their expectations to keep interest rates close to zero at least through 2023, potentially bolstering the cryptocurrency’s appeal as a hedge against faster inflation.
Growing support for bitcoin
Recently, a Chinese tech firm Meitu announced a major investment in BTC and ETH. After announcing a $40 million investment earlier this month, Meitu has invested another $50 million in Bitcoin (BTC) and Ethereum (ETH). Meitu announced the purchase of an additional 16,000 $ETH for $28.4 million and 386 $BTC for $21.6 million.
Currently, Meitu has invested more in ETH than in BTC, with the founder saying it is the world’s first public company to purchase ETH on such a large scale.
On Wednesday, Morgan Stanley became the first central U.S. bank to offer its high-profile clients access to BTC funds.
The move is expected to attract other Wealth Management companies on Wall Street to join the BTC bandwagon. The bank said that it would offer its clients access to the Bitcoin funds operated by Galaxy Digital and NYDIG.