News Crypto
Bitcoin fell on Thursday, stabilizing after a rally fueled by optimism over a ceasefire between Israel and Iran. Despite the recent gains, the world's largest cryptocurrency remained within its recent trading range.
The focus now is on growing institutional demand for the cryptocurrency amid reports of several corporations buying bitcoin. U.S. mortgage giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) are also willing to consider the cryptocurrency as an asset for mortgage applications.
However, the buying and adoption appear to have provided only limited support for bitcoin prices, at least for now.
The world’s largest cryptocurrency was down 0.6% at $107,020 by 17:09 Moscow time, remaining below a weekly high of $108,000.
Broader cryptocurrency prices have been mixed, as improved risk sentiment has contributed to limited gains this week.
Bitcoin Sees Increase in Institutional Buying
Bitcoin has enjoyed a wave of institutional buying this week.
Anthony Pompliano’s ProCap BTC, a crypto venture firm, has purchased nearly $400 million worth of bitcoin this week. This comes just days after the company inked a $1 billion deal to go public via a merger with a special-purpose acquisition company.
In Japan, hotel operator Metaplanet has bought about $133 million worth of bitcoin, becoming the fifth-largest corporate holder of the cryptocurrency after Elon Musk’s Tesla (NASDAQ:TSLA).
This week’s purchases follow Gamestop’s purchase of about $500 million worth of bitcoin in late May.
The corporations appear to be largely trying to emulate Michael Saylor’s Strategy Incorporated (NASDAQ:MSTR), which has reached a valuation of more than $100 billion thanks to a wave of bitcoin purchases.
Sentiment toward cryptocurrencies has also improved this year amid growing signs of a friendly regulatory environment in the U.S.