Cryptocurrencies have taken over the world of finance and Wall Street, but now they’re beginning to take over the mainstream as well. In the past month, the number of developments alone has propelled the cryptocurrency industry, and Bitcoin, into the limelight once again.
Each development was more notable than the next. We’re reviewing all of the latest news and announcements to answer the question: Have cryptocurrencies gone mainstream?
El Salvador Revives The Positive Trend
The trend of positive news first truly began when Bitcoin became legal tender in El Salvador. But because that day was what the trading community refers to as a “sell the news event” and led to a bloodbath, it is hard to consider it all positive. The impact was monumental nonetheless.
It represented the first nation to mandate that all businesses in the country accept cryptocurrency under the law. It also put Bitcoin on the map globally forever and restarted positive discussion around the coin.
ProShares Bitcoin ETF Gets Approved
The next major milestone for Bitcoin was the introduction of the ProShares Bitcoin Strategy ETF, which is a futures-based exchange-traded fund. Leading up to the reveal of the news, speculation caused Bitcoin to rise to $50,000, and when it was approved, Bitcoin soared back to $60,000. On the day of the debut of the ETF, Bitcoin price set a new all-time high.
Open interest also set a new record, suggesting that traders immediately took long and short positions speculating on what might happen next. When there is too much leverage in the market prices can’t move up naturally and often leads to sideways price action and plenty of shakeouts.
More EFTs, Facebook Novi
Several more ETFs were also approved and more are expected to see such positive reception. The ProShares Bitcoin Strategy ETF smashed the record for the fastest ETF to $1 billion in assets, taking only two days to do so, and beating the previous title holder, SPDR Gold Trust ETF.
The next major milestone, however, came from Facebook. Facebook gave crypto a try years back with its Libra cryptocurrency project, but the government got in the way of the plans. Zuckerberg hasn’t given up and has launched the Novi crypto wallet, which focuses on the Paxos Standard stablecoin and cross-border transactions.
Tom Brady And His 600th TD Pass
A big win for Bitcoin also came just as Tom Brady threw his 600th touchdown pass. The fan who returned the ball to Brady was given signed jerseys and all kinds of gear. But Brady also gave the fan a full Bitcoin.
Tom Brady is considered the greatest NFL quarterback of all time, and his debut into crypto marked the top of the early April 2021 rally. When Bitcoin made a new all-time high, Brady tweeted a video of himself throwing a “Bitcoin” to “the moon.” He also publicly mocked those who said he was a sign the top was in. Tom Brady himself believes he is still “early.”
Mastercard And Banks Get On Board Bitcoin
After that, Mastercard revealed that any bank or merchant on its vast network of millions is almost ready to debut crypto services, including wallets, debit cards, credit cards, loyalty programs, and much more. The rollout is in partnership with Bakkt.
Citibank also made a similar announcement, showing that banks and payment processors are taking an “if you can’t beat ‘em, join ‘em” approach.
Regulators Target Stablecoins
Cryptocurrencies are also the subject of regulation, finally, with the SEC taking a closer look at stablecoins to start. The SEC also approved the first Bitcoin ETF in the US and has thus far truly only ever shown support for Bitcoin and slightly toward Ethereum. The regulatory status of the rest of crypto is a lot more ambiguous.
Not all of this is positive for cryptocurrencies as a whole, but Bitcoin could enjoy an untouchable status due to being fully decentralized.
NFTs Bring Celebrity Influence To Crypto
The NFT market has done a great deal to bring the mainstream into the world of crypto, especially around celebrities, musicians, and athletes. All of these types of influential figures buy Crypto Punks and Bored Apes to use as their Twitter avatars.
It has brought such types into crypto, who are also buying Bitcoin, Ethereum, Dogecoin, and Shiba.
DeFi And Covesting Yield Accounts
DeFi has also made the industry itself more attractive, helping to show that decentralized protocols with no one in charge but computer code can beat massive banks at the services they’ve provided for centuries. For example, a traditional savings account is just 0.04% in most cases, while DeFi APY rates can reach as high as 10%.
New solutions are popping up every day, such as the Covestng yield account system on the award-winning Bitcoin trading platform PrimeXBT. The tool makes DeFi more accessible by connecting to top DeFi protocols with a simple-to-use interface.
Hyperinflation Causes Prices To Pump
Talk of hyperinflation recently has made Bitcoin even more popular, as the world feels the early onset of what might be the new norm of higher prices across the board. Hyperinflation causes the prices of everything to go up.
Natural gas and oil prices are soaring, and so are cryptocurrencies. Food prices are through the roof, and luxury goods are impossible to find. Even expensive Rolex watches have suddenly become extremely rare, and soon iPhones might fall victim to the same fate as the world feels the effects of the first-ever modern-day supply crunch.
Has Bitcoin Gone Mainstream?
The supply shock narrative could coincide with the culmination of the crypto market cycle, making for a highly volatile next few months. Bitcoin price could soar to $100,000 or more and crash back to prices of $60,000 in the same month.
When such volatility strikes, switching to trading instead of simply holding is the best strategy. Otherwise, the bear market can be brutal if no profits are ever taken. It also means another four or more years to wait before a new cycle begins, unless you short the market and trade each rally.
Bitcoin has gone mainstream, but because it’s still early, it is still a speculative asset.
Featured image: Unsplash (John Price).