Over the past day, the cryptocurrency market has received the necessary impetus for an immediate resumption of growth. Bitcoin approached record levels, while ETH and LTC were finally able to overcome the psychological boundaries that prevented assets from growing in value. The main reason for the positive dynamics of the market was two important news.
First, the American investment company Morgan Stanley will be the first in the history of the United States to allow clients to invest up to 2.5% of the investment portfolio in funds based on cryptocurrency. The innovation will take effect from next month and is guaranteed to increase the interest of users in the digital asset market. Also, the launch of this feature contributes to a bolder and wider spread of investment operations with cryptocurrencies in the US.
JPMorgan's report, which indicated that 1% of the investment portfolio should be provided to bitcoin played an important role in the launch of this feature. Based on this, we can conclude that at first, the use of cryptocurrencies in the investment portfolios of Morgan Stanley clients will be associated with hedging risks from fluctuations in traditional assets, such as stocks and raw materials.
The second news, which complemented the positive information background around the cryptocurrency market, was the large investment in BTC and ETH of a Chinese smartphone manufacturer. The Chinese tech giant, Meitu, acquired 386 bitcoins worth $21.6 million, as well as 16,000 ethereums for $28.4 million. Throughout this time, the Chinese company has invested more than $90 million in cryptocurrency.
In addition, Meitu made an important announcement, which also influenced the growth of the quotes of major digital assets. The company representatives are confident that the cryptocurrency market is in its infancy, similar to the mobile Internet in 2005. This statement can be considered a confirmation of the company's intentions to increase investment in cryptocurrency in the future.
Against the backdrop of positive news, the digital asset market has found momentum for immediate growth. Over the past day, the price of Bitcoin soared $4,500, gaining a foothold at around $58,500. The total capitalization of the asset again reached $1.1 trillion. This is a very important jump in value since the main cryptocurrency now needs to gain a foothold at the $55,000 mark in order to continue to grow. Due to the positive background and large investments, the asset's margin of safety allows it to hold its positions.
Etheruem gained 3.4% and managed to break through the $1,800 mark, where the currency floundered for almost a week. Now, the crypto asset is balancing on the brink of $1,800-1,820 and is at risk of falling back into unwanted positions. The next few days will show whether Ethereum can gain a foothold above a difficult frontier. If the coin manages to overcome the resistance and settle at the current rates, then the rapid growth of the asset will be only a matter of time.
Litecoin managed to increase its value by 4%, and its situation is similar to the dynamics of the growth of Ethereum. However, the chances of further growth for a digital asset are much less. LTC has overcome the $200 mark and is now trying to stay at the $203 mark. However, based on the fact that the asset's indicators fell in a few hours (from $208 to $203), Litecoin has no prerequisites for further growth.
The Ripple token is going through difficult times and does not respond to general market sentiment. The asset has risen in price by only 1.4%, but the cryptocurrency has been fluctuating in the range of $0.450-0.477 for more than a week. Do not expect the coin to grow steadily until the end of the SEC-Ripple litigation.